THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Application. 
3.  Definitions. 

CHAPTER II 

CENTRAL REGISTRAR AND REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES 

4.  Central Registrar. 
5.  Multi-State co-operative societies which may be registered. 
6.  Application for registration. 
7.  Registration. 
8.  Registration certificate. 
9.  Multi-State co-operative society to be body corporate. 
10.  Bye-laws of multi-State co-operative societies. 
11.  Amendment of bye-laws of a multi-State co-operative society. 
12.  When amendment of bye-laws comes into force. 
13.  Change of name. 
14.  Change of address. 
15.  Publication of name by multi-State co-operative society. 
16.  Liability. 
17.  Amalgamation  or  transfer  of  assets  and  liabilities,  or  division  of  multi-State  co-operative 

societies. 

18.  Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in 

certain cases. 

19.  Promotion of subsidiary institution. 
20.  Liability of a co-operative bank to Deposit Insurance and Credit Guarantee Corporation. 
21.  Cancellation of registration certificate of multi-State co-operative societies in certain cases. 
22.  Conversion of a co-operative society into a multi-State co-operative society. 

CHAPTER III 

REGISTRATION AND FUNCTIONS OF FEDERAL CO-OPERATIVES 

23.  Registration of federal co-operative. 
24.  Functions of federal co-operative. 

MEMBERS OF MULTI-STATECO-OPERATIVE SOCIETIES AND THEIR DUTIES, RIGHTS AND LIABILITIES 

CHAPTER IV 

25.  Persons who may become members. 
26.  Nominal or associate member of society. 
27.  Educational course for members. 
28.  Members not to exercise rights till due payment made. 
29.  Disqualification for member of a multi-State co-operative society. 
30.  Expulsion of members. 
31.  Vote of members. 

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SECTIONS 

32.  Manner of exercising vote. 
33.  Restriction on holding of shares. 
34.  Restriction on transfer of shares or interest. 
35.  Redemption of shares. 
36.  Transfer of interest on death of members. 
37.  Liabilities of past member and estate of deceased member. 

CHAPTER V 

DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIES 

38.  Constitution, powers and functions of general body. 
39.  Annual general meeting of general body. 
40.  Special general meeting of general body. 
41.  Board of directors. 
42.  Association of employees in management decision making process. 
43.  Disqualifications for being a member of board. 
44.  Prohibition  to  hold  office  of  chairperson  or  president  or  vice-chairperson  or  vice-president  in 

certain cases. 

45.  Elections of members of board. 
46.  Holding of office in co-operative society. 
47.  Removal of elected members by general body. 
48.  Nominee of Central Government or State Government on board. 
49.  Powers and functions of board. 
50.  Meeting of board. 
51.  Chief Executive. 
52.  Powers and functions of Chief Executive. 
53.  Committees of board. 
54.  Securing possession of records, etc. 

CHAPTER VI 

PRIVILEGES OF MULTI-STATE CO-OPERATIVE SOCIETIES 

55.  Charge and set-off in respect of share or contribution or interest of members. 
56.  Share or contribution or interest not liable to attachment. 
57.  Register of Members. 
58.  Admissibility of copy of entry as evidence. 
59.  Exemption from compulsory registration of instruments. 
60.  Deduction from salary to meet multi-State co-operative society’s claim incertain cases. 
61.  Government aid to multi-State co-operative societies. 

PROPERTIES AND FUNDS OF MULTI-STATE CO-OPERATIVE SOCIETIES 

CHAPTER VII 

62.  Funds not to be divided by way of profit. 
63.  Disposal of net profits. 
64.  Investment of funds. 
65.  Restriction on contribution. 
66.  Restrictions on loans. 
67.  Restriction on borrowings. 
68.  Restrictions on other transactions with non-members. 
69.  Contributory provident fund. 

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CHAPTER VIII 

AUDIT, ENQUIRY, INSPECTION AND SURCHARGE 

SECTIONS 

70.  Appointment and remuneration of auditors. 
71.  Provision as to resolutions for appointing or removing auditors. 
72.  Qualifications disqualifications of auditors. 
73.  Powers and duties of auditors. 
74.  Signature of audit report, etc. 
75.  Reading and inspection of auditor’s report. 
76.  Right of auditor to attend general meeting. 
77.  Power of Central Government to direct special audit in certain cases. 
78.  Inquiry by Central Registrar. 
79.  Inspection of multi-State co-operative societies. 
80.  Inspection of books of indebted multi-State co-operative societies. 
81.  Costs of inquiry and inspection. 
82.  Recovery of costs. 
83.  Repayment, etc. 

CHAPTER IX 

SETTLEMENT OF DISPUTES 

84.  Reference of disputes. 
85.  Limitation. 

CHAPTER X 

WINDING UP OF MULTI-STATECO-OPERATIVE SOCIETY 

86.  Winding up of multi-State co-operative societies. 
87.  Winding up of co-operative bank at the direction of Reserve Bank. 
88.  Reimbursement to the Deposit Insurance Corporation by liquidator. 
89.  Liquidator. 
90.  Powers of liquidator. 
91.  Disposal of surplus assets. 
92.  Priority of contributions assessed by liquidator. 
93.  Power of Central Registrar to cancel registration of a multi-State co-operative society. 

CHAPTER XI 

EXECUTION OF DECREES, ORDERS AND DECISIONS 

94.  Execution of decisions, etc. 
95.  Execution of orders of liquidator. 
96.  Attachment before award. 
97.  Central Registrar or arbitrator or person authorised to be civil court for certain purposes. 
98.  Recovery of sums due to Government. 

99.  Appeals. 
100. No appeal in certain cases. 
101. Review. 
102. Interlocutory orders. 

CHAPTER XII 

APPEALS AND REVIEW 

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CHAPTER XIII 

SOCIETIES WHICH BECOME MULTI-STATE CO-OPERATIVE SOCIETIESCONSEQUENT ON REORGANISATION OF 
STATES 

SECTIONS 

103. Co-operatives societies functioning immediately before reorganisation of States. 

104. Offences and penalties. 
105. Cognizance of offences. 

CHAPTER XIV 

OFFENCES AND PENALTIES 

CHAPTER XV 

MISCELLANEOUS 

106. Copies of bye-laws, etc., to be open to inspection. 
107. Place of keeping and inspection of, registers and returns. 
108. Inspection of books of account, etc., of multi-State co-operative society. 
109. Annual accounts and balance-sheet. 
110. Minutes of proceedings of general meetings and of board and other meetings. 
111. Minutes to be evidence. 
112. Presumptions to be drawn where minutes duly drawn and signed. 
113. Inspection of minutes book of general meetings. 
114. Liquidator to be public servant. 
115. Notice necessary in suits. 
116. Power to amend Second Schedule. 
117. Bar of jurisdiction of courts. 
118. Indemnity. 
119. Opening of branches. 
120. Filing of returns. 
121. Certain Acts not to apply. 
122. Central Government’s power to give directions to specified multi-State co-operative societies in 

public interest. 

123. Supersession of board of specified multi-State co-operative society. 
124. Power to make rules. 
125. Power to remove difficulties. 
126. Repeal and saving. 

THE FIRST SCHEDULE. 

THE SECOND SCHEDULE. 

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THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002 

ACT NO. 39 OF 2002 

An  Act  to  consolidate  and  amend  the  law  relating  to  co-operative  societies,  with  objects  not 
confined  to  one  State  and  serving  the  interests  of  members  in  more  than  one  State,  to 
facilitate  the  voluntary  formation  and  democratic  functioning  of  co-operative  s  as  people’s 
institutions based on self-help and mutual aid and to enable them to promote their economic 
and  social  betterment  and  to  provide  functional  autonomy  and  for  matters  connected 
therewith or incidental thereto. 

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:— 

[3rd July, 2002.] 

CHAPTER I 

PRELIMINARY 

1. Short title, extent and commencement.—(1) This Act may be called the Multi-State Co-operative 

Societies Act, 2002. 

(2) It extends to the whole of India. 

(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 
Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any 
reference in any such provision to the commencement of this Act shall be construed as a reference to the 
coming into force of that provision. 

2. Application.—This Act shall apply to— 

(a)  all  co-operative  societies,  with  objects  not  confined  to  one  State  which  were  incorporated 

before the commencement of this Act,— 

(i) under the Co-operative Societies Act, 1912 (2 of 1912), or 

(ii) under any other law relating to co-operative societies in force in any State or in pursuance 
of  the  Multi-unit  Co-operative  Societies  Act,  1942  (6  of  1942)  or  the  Multi-State  Co-operative 
Societies Act, 1984 (51 of 1984), 

and the registration of which has not been cancelled before such commencement; and 

(b) all multi-State  co-operative societies. 

3. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “area of operation” means the area from which the persons are admitted as members; 

(b)  “board”  means  the  board  of  directors  or  the  governing  body  of  a  multi-State  co-operative 
society, by whatever name called, to which the direction and control of the management of the affairs 
of the society is entrusted; 

(c) “bye-laws” means the bye-laws for the time being in force which have been duly registered or 
deemed  to  have  been  registered  under  this  Act  and  includes  amendments  thereto  which  have  been 
duly registered or deemed to have been registered under this Act; 

(d)  “Central  Registrar”  means  the  Central  Registrar  of  Co-operative  Societies  appointed  under 
sub-section (1) of section 4 and includes any officer empowered to exercise the powers of the Central 
Registrar under sub-section (2) of that section; 

(e)  “Chief  Executive”  means  a  Chief  Executive  of  a  multi-State  co-operative  society  appointed 

under section 51; 

(f)  “co-operative  bank”  means  a  multi-State  co-operative  society  which  undertakes  banking 

business; 

(g) “co-operative principles” means the co-operative principles specified in the First Schedule; 

1. 19th  August, 2002,  vide  notification  No.  G.S.R.  571(E), dated 16th  August, 2002,  see  Gazette  of  India,  Extraordinary, 

Part II, sec. 3(i). 

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(h) “co-operative society” means a society registered or deemed to be registered under any law 

relating to co-operative societies for the time being in force in any State; 

(i)  “co-operative  year”,  in  relation  to  any  multi-State  co-operative  society  or  class  of  such 
societies, means the year ending on the31st day of March of the year and where the accounts of such 
society or class of such societies are, with the previous sanction of the Central Registrar, balanced on 
any other day, the year ending on such day; 

(j)  “Deposit  Insurance  Corporation”  means  the  Deposit  Insurance  and  Credit  Guarantee 
Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961); 

(k) “federal co-operative” means a federation of co-operative societies registered under this Act 
and  whose  membership  is  available  only  to  a  co-operative  society  or  a  multi-State  co-operative 
society; 

(l) “general  body”,  in  relation  to  a  multi-State    co-operative  society,  means  all the  members  of 
that society and in relation to a national co-operative society or a federal co-operative means all the 
delegates  of  member  co-operative    societies  or  delegates  of  multistate  co-operative    societies  and 
includes a body constituted under the first proviso to sub-section (1) of section 38; 

(m) “general meeting” means a meeting of the general body of a multistate co-operative  societies 

and includes special general meeting; 

(n)  “member”  means  a  person  joining  in  the  application  for  the  registration  of  a  multi-State           

co-operative  society  and  includes  a  person  admitted  to  membership  after  such  registration  in 
accordance with the provisions of this Act, the rules and the byelaws; 

(o)  “member  co-operative”  means  a  co-operative    society  or  a  multistate  co-operative  society 

which is member of a federal co-operative ; 

(p) “multi-State co-operative society” means a society registered or deemed to be registered under 

this Act and includes a national co-operative  society and a Federal co-operative ; 

(q) “multi-State co-operative society with limited liability” means a society having the liability of 
its members limited by its bye-laws to the amount, if any, unpaid on the shares, respectively, held by 
them or to such amount as they may, respectively, thereby undertake to contribute to the assets of the 
society, in the event of its being wound up; 

(r)  “national  co-operative  society”  means  a  multi-State  co-operative  society  specified  in  the 

Second Schedule; 

(s) “notification” means a notification published in the Official Gazette; 

(t) “officer” means a president, vice-president, chairperson, vice-chairperson, managing director, 
secretary, manager, member of aboard, treasurer, liquidator, an administrator appointed under section 
123  and  includes  any  other  person  empowered  under  this  Act  or  the  rules  or  the  bye-laws  to  give 
directions in regard to the business of a multi-State co-operative  society; 

(u) “prescribed” means prescribed by rules; 

(v) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India 

Act, 1934 (2 of 1934); 

(w) “rules” means the rules made under this Act. 

CHAPTER II 

CENTRAL REGISTRAR AND REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES 

4. Central Registrar.—(1) The Central Government may appoint a person to be the Central Registrar 
of  Co-operative  Societies  and  may  appoint  such  other  persons  as  it  may  think  fit  to  assist  the  Central 
Registrar. 

(2) The  Central  Government  may,  by  notification,  direct that  any  power exercisable by  the  Central 
Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall, 
in relation to such society, and such matters as may be specified in the notification, be exercisable also by  

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any  other  officer  of  the  Central  Government  or  of  a  State  Government  as  may  be  authorised  by  the 
Central Government subject to such conditions as may be specified therein: 

Provided that no officer of a state government shall be empowered to exercise such power in relation 

to a national co-operative society. 

5.  Multi-State  co-operative  societies  which  may  be  registered.—(1)  No  multi-State  co-operative 

society shall be registered under this Act, unless,— 

(a) its main objects are to serve the interests of members in more than one state; and 

(b) its bye-laws provide for social and economic betterment of its members through self-help and 

mutual aid in accordance with the co-operative principles. 

(2) The word “limited” or its equivalent in any Indian language shall be suffixed to the name of every 

multi-State co-operative society registered under this Act with limited liability. 

6. Application for registration.—(1) For the purposes of registration of a  multi-State  co-operative 
society under this Act, an application shall be made to the Central Registrar in such form and with such 
particulars as may be prescribed. 

(2) The application shall be signed,— 

(a) in the case of a multi-State co-operative  society of which all the members are individuals, by 

at least fifty persons from each of the state concerned; 

(b)  in  the  case  of  a  multi-State  co-operative  society  of  which  the  members  are  co-operative  
societies,  by  duly  authorized  representatives  on  behalf  of  at  least  five  such  societies  as  are  not 
registered in the same state; and 

(c)  in  the  case  of  a  multi-State  co-operative    society  of  which  another  multi-State  co-operative  
society and other co-operative  societies are members, by duly authorised representatives of each of 
such societies: 

Provided  that  not  less  than  two  of  the  co-operative  societies  referred  to  in  this  clause,  shall  be 

such as are not registered in the same state; 

(d)  in  the  case  of  a  multi-State  co-operative  society  of  which  the  members  are  co-operative  

societies or multi-State co-operative societies and individuals, by at least— 

(i) fifty persons, being individuals, from each of the two states or more; and 

(ii)  one  co-operative  society  each  from  two  states  or  more  or  one  multi-State  co-operative 

society. 

(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State 
co-operative society and the persons by whom or on whose behalf such application is made shall furnish 
such information in regard to the society as the Central Registrar may require. 

7. Registration.—(1) If the Central Registrar is satisfied— 

(a) that the application complies with the provisions of this Act and the rules; 

(b) that the proposed multi-State co-operative  society satisfies the basic criterion that its objects 

are to serve the interests of members in more than one state; 

(c) that its bye-laws provide for social and economic betterment of its members through self-help 

and mutual aid in accordance with the co-operative  principles; 

(d) that the proposed bye-laws are not contrary to the provision of this Act and the rules, 

he may register the multi-State co-operative  society and its bye-laws. 

(2) The application for registration shall be disposed of by the Central Registrar within a period of 

four months from the date of receipt thereof by him. 

(3)  Where  the  Central  Registrar  refuses  to  register  a  multi-State  co-operative  society,  he  shall 

communicate, within a period of four months from the date of receipt of the application for registration,  

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The order of refusal together with the reasons there for to the applicant or applicants, as the case may be: 

Provided that no order or refusal shall be made unless the applicants have been given a reasonable 

opportunity of being heard: 

Provided  further  that  if  the  application  for  registration  is  not  disposed  of  within  a  period  of  four 
months  specified  in  sub-section  (2)  or  the  Central  Registrar  fails  to  communicate  the  order  of  refusal 
within that period, the application shall be deemed to have been accepted for registration and the Central 
Registrar shall issue the registration certificate in accordance with the provisions of this Act and the rules 
made there under. 

8.  Registration  certificate.—Where a  multi-State co-operative  society  is registered  under this  Act, 
the  Central  Registrar  shall  issue  a  certificate  of  registration  signed  by  him,  which  shall  be  conclusive 
evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the 
registration of the society has been cancelled. 

9.  Multi-State  co-operative  society  to  be  body  corporate.—(1)  The  registration  of  a  multi-State  
co-operative    society  shall  render  it  a  body  corporate  by  the  name  under  which  it  is  registered  having 
perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both 
movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to 
do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be 
sued. 

(2)  All transactions  entered  into  in  good  faith  prior  to  the  registration  of  a  multi-State co-operative  
society  shall  be  deemed  to  be  its  transactions  after  registration  for  furtherance  of  the  objects  of  its 
registration. 

10. Bye-laws of multi-State co-operative societies.—(1) Every multi-State co-operative society may 

make its bye-laws consistent with the provisions of this Act and the rules made there under. 

(2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may 

provide for all or any of the following matters, namely:— 

(a) the name, address and area of operation of the society; 

(b) the objects of the society; 

(c) the services to be provided to its members; 

(d) the eligibility for obtaining membership; 

(e) the procedure for obtaining membership; 

(f) the conditions for continuing as member; 

(g) the procedure for withdrawal of membership; 

(h) the transfer of membership; 

(i) the procedure for expulsion from membership; 

(j) the rights and duties of the members; 

(k) the nature and amount of capital of the society; 

(l) the manner in which the maximum capital to which a single member can subscribe; 

(m) the sources from which the funds may be raised by the multistate co-operative society; 

(n) the purpose for which the funds may be applied; 

(o) the manner of allocation or disbursement of net profits of the multi-State co-operative society; 

(p) the constitution of various reserves; 

(q)  the  manner  of  convening  general  meetings  and  quorum  thereof  other  than  those  provided 

under this Act; 

(r) the procedure for notice and manner of voting, in general and other meetings; 

(s) the procedure for amending the bye-laws; 

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(t) the number of members of the board not exceeding twenty-one; 

(u) the tenure, of directors, chairperson and other office bearers of the society, not exceeding five 

years; 

(v) the procedure for removal of members of the board and for filling up of vacancies; 

(w) the manner of convening board meetings, its quorum, number of meetings in a year and venue 

of such meetings; 

(x) the frequency of board meetings; 

(y) the powers and functions of the Chief Executive in addition to those provided under section 

52; 

(z) the manner of imposing the penalty; 

(za) the appointment, rights and duties of auditors and procedure for conduct of audit; 

(zb)  the  authorisation  of  officers  to  sign  documents  and  to  institute  and  defend  suits  and  other 

legal proceedings on behalf of the society; 

(zc)  the  terms  on  which  a  multi-State  co-operative    society  may  deal  with  persons  other  than 

members; 

(zd) the terms on which a multi-State co-operative  society may associate with other co-operative 

societies; 

(ze) the terms on which a multi-State co-operative society may deal with organisation other than 

co-operative societies; 

(zf) the rights, if any, which the multi-State co-operative  society may confer on any other multi-
State co-operative society or federal co-operative and the circumstances under which such rights may 
be exercised by the federal co-operative; 

(zg) the procedure and manner for transfer of shares and interest in the name of a nominee in case 

of death of a member; 

(zh)  the  educational  and  training  programmes  to  be  conducted  by  the  multi-State  co-operative 

society; 

(zi) the principal place and other places of business of multi-State co-operative society; 

(zj) the minimum level of services, to be used by its members; 

(zk) any other matter which may be prescribed. 

11.  Amendment  of  bye-laws  of  a  multi-State  co-operative  society.—(1)  No  amendment  of  any 
bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered 
under this Act. 

(2)  The  amendment  to  the  bye-laws  of  a  multi-State  co-operative  society  shall  be  made  by  a 
resolution  passed  by  a  two-third  majority  of the  members  present and  voting  at general  meeting  of  the 
society. 

(3) No such resolution shall be valid unless fifteen clear days’ notice of the proposed amendment has 

been given to the members. 

(4)  In  every  case  in  which  a  multi-State  co-operative  society  proposes  to  amend  its  bye-laws,  an 

application to register such amendments shall be made to the Central Registrar together with— 

(a) a copy of the resolution referred to in sub-section (2); 

(b) a statement containing the particulars indicating— 

(i) the date of the general meeting at which the amendments to the bye-laws were made; 

(ii) the number of days’ notice given to convene the general meeting; 

(iii) the total number of members of the multi-State co-operative society; 

(iv) the quorum required for such meeting; 

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(v) the number of members present at the meeting; 

(vi) the number of members who voted in such meeting; 

(vii) the number of members who voted in favour of such amendments to bye-laws; 

(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together 

with reasons justifying such amendments; 

(d) four copies of the text of the bye-laws incorporating therein the proposed amendments signed 

by the officer duly authorised in this behalf by the general body; 

(e) a copy of the notice given to the members and the proposal to amend the bye-laws; 

(f)  a  certificate  signed  by  the  person  who  presided  at  the  general  meeting  certifying  that  the 

procedure specified in sub-sections(2) and (3) and the bye-laws had been followed; 

(g) any other particular which may be required by the Central Registrar in this behalf. 

(5) Every such application shall be made within sixty days from the date of the general meeting at 

which such amendment to the bye laws-was passed. 

(6) The procedure given in sub-sections (2) to (5) of this section shall apply to the amendment of the 
bye-laws of a co-operative society desiring to convert itself into a multi-State co-operative society as per 
the provisions of section 22. 

(7)  If,  on  receipt  of  application  under  sub-section  (5),  the  Central  Registrar  is  satisfied  that  the 

proposed amendment— 

(a) is not contrary to the provisions of this Act or of the rules; 

(b) does not conflict with co-operative  principles; and 

(c) will promote the economic interests of the members of the multistate co-operative society, 

he may register the amendment within a period of three months from the date of receipt thereof by him. 

(8) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered 
amendment  together  with  a  certificate  signed  by  him  within  a  period  of  one  month  from  the  date  of 
registration thereof and such certificate shall be conclusive evidence that the amendment has been duly 
registered. 

(9)  Where  the  Central  Registrar  refuses  to  register  an  amendment  of  the  bye-laws  of  a  multi-State    

co-operative society, he shall communicate the order of refusal together with the reasons therefore to the 
Chief Executive of the society in the manner prescribed within fifteen days from the date of such refusal: 

Provided  that  if  the  application  for  registration  is  not  disposed  of  within  a  period  of  three  months 
specified in sub-section (7) or the Central Registrar fails to communicate the order of refusal within that 
period, the application shall be deemed to have been accepted for registration and the Central Registrar 
shall issue registration certificate in accordance with the provisions of this Act. 

12. When amendment of bye-laws comes into force.—An amendment of the bye-laws of a multi-
State co-operative  society shall, unless it is expressed to come into operation on a particular day, come 
into force on the day on which it is registered. 

13. Change of name.—(1) A multi-State co-operative society may, by an amendment of its bye laws, 
change its name but such change shall not affect any right or obligation of the multi-State  co-operative 
society  or  of  any  of  its  members  or  past  members,  and  any  legal  proceedings  which  might  have  been 
continued or commenced by or against the  multi-State co-operative society by its former name, may be 
continued or commence by or against its new name. 

(2) Where a  multi-State co-operative  society changes its name, the Central Registrar shall enter the 
new name on the register of multistate co-operative society in place of former name and shall amend the 
certificate of registration accordingly. 

14.  Change  of  address.—Every  multi-State  co-operative  society  shall  have  principal  place  of 
business and an address registered in the manner prescribed to which all notices and communications may 
be sent. 

10 

 
15.  Publication  of  name  by  multi-State  co-operative  society.—Every  multi-State  co-operative 

society— 

(a) shall paint or affix its name and the address of its registered office and keep the same painted 
or affixed, on the outside of every office or place in which its business is carried on, in conspicuous 
position,  in  letters  easily  legible;  and  if  the  characters  employed  therefore  are  not  those  of  the 
language,  or  of  one  of  the  languages  in  general  use  in  that  locality,  also  in  the  characters  of  that 
language or of one of those languages; 

(b) shall have its name en graven in legible characters on its seal; and 

(c) shall have its name and the address of its registered office mentioned in legible characters in 
all  its  business  letters,  in  all  its  billheads  and  letter  paper,  and  in  all  its  notices  and  other  official 
publications; and also have its name so mentioned in all bills of exchange, hundies, promissory notes, 
endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the 
multi-State co-operative  society, and in all bills of parcels, invoices, receipts and letters of credit of 
the multi-State co-operative society. 

16.  Liability.—(1)  No  multi-State  co-operative  society  with  unlimited  liability  shall  be  registered 

after the commencement of this Act: 

Provided that where a multi-State co-operative society with unlimited liability was functioning before 
the commencement of this Act, such a society shall exercise the option within a period of one year from 
such  commencement  either  to  continue  to  function  as  such  or  to  convert  itself  into  a  multi-State                       
co-operative society with limited liability by following the procedure specified in sub-sections (2) to (4). 

(2) Subject to the provisions of this Act and the rules, a multi-State co-operative society may, by an 

amendment of its bye-laws, change the extent of its liability. 

(3)  When  a  multi-State  co-operative  society  has  passed  a  resolution  to  change  the  extent  of  its 
liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding any 
thing  contained  in  the  bye-laws  or  contract  to  the  contrary,  any  member  or  creditor  shall,  during  the 
period of one month from the date of service of the notice upon him, have the option of withdrawing his 
shares, deposits or loans, as the case may be. 

(4)  Any  member  or  creditor  who  does  not  exercise  his  option  within  the  period  specified  in  sub-

section (3) shall be deemed to have assented to the change. 

(5)  An  amendment  of  a  bye-law  of  a  multi-State  co-operative  society  changing  the  extent  of  its 

liability shall not be registered or shall not take effect until either— 

(a) the assent thereto of all members and creditors has been obtained; or 

(b)  all  claims  of  members  and  creditors  who  exercise  the  option  referred  to  in  sub-section  (3) 

within the period specified therein have been met in full or otherwise satisfied. 

17.  Amalgamation  or  transfer  of  assets  and  liabilities,  or  division  of  multi-State  co-operative 
societies.—(1) A multi-State co-operative society may, by a resolution passed by a majority of not less 
than  two-thirds  of  the  members,  present  and  voting  at  a  general  meeting  of  the  society  held  for  the 
purpose,— 

(a)  transfer  its  assets  and  liabilities  in  whole  or  in  part  to  any  other  multi-State  co-operative 

society or co-operative society; 

(b) divide itself into two or more multi-State co-operative societies; 

(c) divide itself into two or more co-operative societies. 

(2) Any two or more multi-State co-operative societies may, by are solution passed by a majority of 
not  less  than  two-thirds  of  the  members  present  and  voting  at  a  general  meeting  of  each  such  society, 
amalgamate themselves and form a new multi-State co-operative society. 

(3) The resolution of a multi-State co-operative society under sub-section (1) or sub-section (2) shall 

contain all particulars of the transfer or division or amalgamation, as the case may be. 

(4)  When  a  multi-State  co-operative  society  has  passed  a  resolution  under  sub-section  (1)  or                   

sub-section  (2),  it  shall  give  notice  thereof  in  writing  to  all  the  members  and  creditors,  and,  notwith 

11 

 
standing  anything  contained  in  the  bye-laws  or  contract  to  the  contrary,  any  member  or  creditor  shall, 
during  the  period  of  one  month  of  the  date  of  service  of  the  notice  upon  him,  have  the  option  of 
withdrawing his share, deposits or loans, as the case may be. 

(5)  Any  member  or  creditor  who  does  not  exercise  his  option  within  the  period  specified  in  sub-

section (4) shall be deemed to have assented to the proposals contained in the resolution. 

(6)  (a)  A  resolution  passed  by  a  multi-State  co-operative    society  under  this  section  shall  not  take 

effect until the assent thereto of all the members and creditors has been obtained. 

(b)  The  multi-State  co-operative  society  shall  make  arrangements  for  meeting  in  full  or  otherwise 
satisfying all claims of the members and creditors who exercise the option within the period specified in 
sub-section (4). 

(7) On receipt of an application for the registration of new societies formed by division in accordance 
with  the  resolution  passed  under  sub-section  (1)  or  of  a  new  society  formed  by  amalgamation  in 
accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that 
the  resolution  has  become  effective  under  sub-section  (6)  shall,  unless  for  reasons  to  be  recorded  in 
writing he thinks fit to refuse so to do, Register the new society or societies, as the case may be, and the 
bye-laws thereof. 

(8) On the issue of an order under sub-section (7), the provisions of section 21 shall, so far as may be, 
apply  to  the  multi-State  co-operative  society  so  divided  or  the  multi-State  co-operative  societies  so 
amalgamated. 

(9)  Where  a  resolution  passed  by  a  multi-State  co-operative  society  under  this  section  involves  the 
transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other 
law  for  the  time  being  in  force,  be  a  sufficient  conveyance  to  vest  the  assets  and  liabilities  in  the 
transferee without any further assurance. 

18.  Central  Registrar  to  prepare  scheme  of  amalgamation  or  reorganisation  of  a  co-operative 
bank in certain cases.—When an order of moratorium has been made by the Central Government under 
sub-section  (2)  of  section  45  of  the  Banking  Regulation  Act,  1949  (10  of  1949)  in  respect  of  a                
co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, 
during the period of moratorium prepare a scheme— 

(a) for the amalgamation of the co-operative bank with any other co-operative bank; or 

(b) for the re organisation of the co-operative bank. 

19.  Promotion  of  subsidiary  institution.—(1)  Any  multi-State  co-operative  society  may,  by  a 
resolution passed at general meeting by a majority of members present and voting, promote one or more 
subsidiary  institutions,  which  may  be  registered  under  any  law  for  the  time  being  in  force,  for  the 
furtherance of its stated objects. 

(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as general body 

of the multi-State co-operative society deems its existence necessary: 

Provided that a multi-State co-operative society while promoting such a subsidiary institution, shall 
not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated 
objects. 

Explanation.—For the purposes of this section,— 

(a)  an  institution  shall  be  deemed  to  be  a  subsidiary  institution  if  the  multi-State  co-operative 

society— 

(i)  controls  the  management  or  board  of  directors  or  members  of  governing  body  of  such 

institution; or 

(ii) holds more than half in nominal value of equity shares of such institutions; or 

(iii)  if  one  or  more  members  of  such  multi-State  co-operative  society,  hold  whether  by 
themselves  or  together  with  subsidiary  institution  or  their  relatives,  as  the  case  maybe,  the 
majority of equity shares in that institution; 

(b) a subsidiary institution shall not include a partnership firm. 

12 

 
(3)  The  annual  reports  and  accounts  of  any  such  subsidiary  institution  shall  be  placed  each  year 

before general meeting of the promoting multi-State co-operative society. 

20.  Liability  of  a  co-operative  bank  to  deposit  insurance  and  credit  guarantee  corporation.—
Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative  
bank,  being  an  insured  bank  within  the  meaning  of  the  Deposit  Insurance  and  Credit  Guarantee 
Corporation Act,1961 (47 of 1961), is amalgamated or reorganised and the Deposit Insurance Corporation 
has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that 
Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after 
such  amalgamation,  or,  as  the  case  may  be,  the  insured  bank  or  transferee  bank  shall  be  under  an 
obligation  to  repay  to  the  Deposit  Insurance  Corporation  in  the  circumstances,  to  the  extent  and  in  the 
manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961. 

21.  Cancellation  of  registration  certificate  of  multi-State  co-operative  societies  in  certain 
cases.—(1)  Where  the  whole  of  the  assets  and  liabilities  of  a  multi-State  co-operative  society  are 
transferred to another multi-State co-operative society or to a co-operative society in accordance with the 
provisions of section 17, the registration of the first mentioned multi-State co-operative society shall stand 
cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate 
body. 

(2) Where two or more multi-State co-operative societies are amalgamated into a new multi-State co-
operative  society  in  accordance  with  the  provisions  of  section  17,  the  registration  of  each  of  the 
amalgamating  societies  shall  stand  cancelled  on  the  registration  of  the  new  society,  and  each  of  the 
amalgamating  societies  shall  be  deemed  to  have  been  dissolved  and  shall  cease  to  exist  as  a  corporate 
body. 

(3) Where a multi-State co-operative society divides itself into two or more multi-State co-operative  
societies  or  two  or  more  co-operative  societies  in  accordance  with  the  provisions  of  section  17,  the 
registration of that society shall stand cancelled on the registration of the new societies and that society 
shall be deemed to have been dissolved and shall cease to exist as a corporate body. 

(4)  The  amalgamation  or  division  of  multi-State  co-operative  societies  shall  not  in  any  manner 
whatsoever affect any right or obligation of the resulting multi-State co-operative society or societies or 
render defective any legal proceedings by or against the multi-State co-operative society or societies, and 
any  legal  proceedings  that  might  have  been  continued  or  commenced  by  or  against  the  multistate  co-
operative society or societies, as the case may be, before the amalgamation or division, may be continued 
or commenced by or against the resulting multi-State co-operative society or societies. 

22.  Conversion  of  a  co-operative  society  into  a  multi-State  co-operative  society.—(1)  A  co-
operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a 
multi-State co-operative society: 

Provided that no such amendment of bye-laws of a co-operative  society shall be valid unless it has 

been registered by the Central Registrar. 

(2) (a) Every proposal for such amendment of bye-laws shall be forwarded to the Central Registrar in 

accordance with the provisions contained in sub-section (4) of section 11. 

(b)  If  the  Central  Registrar,  after  consulting  the  Registrars  of  Co-operative  Societies  of  the  States 

concerned, has satisfied himself that such amendment— 

(i) fulfils the requirements of the members being from more than one state; 

(ii) is in accordance with the provisions contained in sub-section(4) of section 11, 

he may register the amendment within a period of six months from the date of receipt thereof by him: 

Provided that no co-operative society shall be deemed to have been converted into a multi-State co-
operative society on any ground whatsoever unless such society is registered as a multi-State co-operative 
society. 

(3)  The  Central  Registrar  shall  forward  to  the  co-operative  society  a  copy  of  the  registered 
amendment together with a certificate signed by him and such certificate shall be conclusive evidence that 
the amendment has been registered. 

13 

 
(4) Where the Central Registrar refuses to register an amendment of the bye-laws or a co-operative 
society, he shall communicate the order of refusal together with the reasons therefore to the society in the 
manner prescribed within seven days from the date of refusal. 

(5)(a) Once the amendment of bye-laws has been registered by the Central Registrar, the co-operative 

society shall, as from the date of registration of amendment, become a multi-State co-operative society. 

(b) The Central Registrar shall forward to the co-operative society a certificate signed by him to the 
effect that such society has been registered as a multi-State co-operative society under this Act and also 
forward a copy of the same to the Registrar of Co-operative Societies of the State concerned. 

(c)  The  Registrar  of  Co-operative  Societies  referred  to  in  clause  (b)shall  thereupon  make  an  order 
directing  that  the  society  had,  as  from  the  date  of  registration  by  the  Central  Registrar,  ceased  to  be  a 
society under the law relating to co-operative societies in force in that state. 

CHAPTER III 

REGISTRATION AND FUNCTIONS OF FEDERAL CO-OPERATIVES 

23.  Registration  of  federal  co-operative.—(1)  Every  federal  co-operative  shall  obtain  registration 

certification in accordance with the provisions of this Act. 

(2) Every federal co-operative shall in its general meeting be represented by its member co-operative. 

(3) The classification of federal co-operative and other terms and conditions applicable to it shall be 

such as may be prescribed. 

(4) All provisions of this Act, applicable to a multi-State co-operative society shall, as far as may be, 

apply to a federal co-operative. 

24. Functions of federal co-operative.—(1) Subject to the provisions of this Act and any other law 
for the time being in force, a federal co-operative may discharge the functions to facilitate the voluntary 
formation  and  democratic  functioning  of  co-operative  societies  as  federal  co-operative    or  multi-State               
co-operatives based on self-help and mutual aid. 

(2)  Without  prejudice  to  the  generality  of  the  provisions  contained  in  sub-section  (1),  the  federal              

co-operative may— 

(a) ensure compliance of the co-operative principles; 

(b) make model bye-laws and policies for consideration of its member co-operative; 

(c) provide specialised training, education and data-base information; 

(d) undertake research, evaluation and assist in preparation of perspective development plans for 

its member co-operative; 

(e) promote harmonious relations amongst member co-operative; 

(f) help member co-operative to settle disputes among themselves; 

(g) undertake business services on behalf of its member co-operative, if specifically required by 

or under the resolution of the general body or the board, or bye-laws of a member of co-operative; 

(h) provide management development services to a member co-operative; 

(i) evolve code of conduct for observance by a member co-operative; 

(j) evolve viability norms for a member co-operative; 

(k) provide legal aid and advice to a member co-operative; 

(l) assist member co-operative in organising self-help; 

(m)  develop  market  information  system  logo  brand  promotion,  quality  control  and  technology 

upgradation. 

14 

 
 
 
CHAPTER IV 

MEMBERS OF MULTI-STATECO-OPERATIVE SOCIETIES AND THEIR DUTIES,RIGHTS AND LIABILITIES 

25.  Persons  who  may  become  members.—(1)  No  person  shall  be  admitted  as  a  member  of  a               

multi-State co-operative society except the following, namely:— 

(a) an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 

1872); 

(b) any multi-State co-operative society or any co-operative society; 

(c) the Central Government; 

(d) a State Government; 

(e)  the  National  Co-operative  Development  Corporation  established  under  the  National                      

Co-operative Development Corporation Act, 1962 (26 of 1962); 

(f) any other corporation owned or controlled by the Government; 

(g) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); 

(h) such class or classes or persons or association of persons as may be permitted by the Central 

Registrar having regard to the nature and activities of a multi-State co-operative society. 

(2)  No  individual  person  shall  be  eligible  for  admission  as  a  member  of  a  national  co-operative 

society or a federal co-operative. 

(3) Any person eligible for membership of a multi-State co-operative society may, on his application, 

be admitted as a member by such society. 

(4)  Every  application  for  admission  as  a  member  of  a  multi-State  co-operative  society  shall  be 
disposed of by such society within a period of four months from the date of receipt of the application, and 
the decision of such society on the application shall be communicated to the applicant within fifteen days 
from the date of such decision: 

Provided that if the application is not disposed of within the period aforesaid, or the decision is not 
communicated  within  a  period  of  fifteen  days  of  the expiry  of the  aforesaid period of four  months,  the 
multi-State co-operative society shall be deemed to have made a decision, on the date of expiry of such 
period, refusing admission to the applicant. 

(5) It shall be the duty of every member of a multi-State co-operative society to promote and protect 

the interests and objects of such society. 

26. Nominal or associate member of society.—A multi-State co-operative society may, if provided 

in its bye-laws, admit a person as nominal or associate member: 

Provided that no such nominal or associate member shall be entitled to subscribe the shares of such 
society or have any interest in the management thereof including right to vote, elect as a director of the 
board or participate in the general body meetings. 

27. Educational course for members.—(1) Every multi-State co-operative society shall organise co-

operative education programmes for its members, directors and employees. 

(2)  Every  multi-State  co-operative  society  may  provide  funds  for  such  co-operative  education 

programmes. 

28.  Members  not  to  exercise  rights  till  due  payment  made.—No  member  of  a  multi-State                      

co-operative society shall exercise the rights of a member, unless he has made the payment to the society 
in  respect  of  membership, or  has  acquired  such  interest  in the  society,  as  may  be  specified  in the  bye-
laws. 

29.  Disqualification  for  member  of  a  multi-State  co-operative  society.—No  person  shall  be 

eligible for being a member of a multi-State co-operative society if— 

(a) his  business is in conflict  or competitive  with the  business  of  such  multi-State co-operative 

society; or 

15 

 
(b) he used for two consecutive years the services below the minimum level specified in the bye-

laws; or 

(c) he has not attended three consecutive general meetings of the multi-State co-operative society 

and such absence has not been condoned by the members in the general meeting; or 

(d) he has made any default in payment of any amount to be paid to the multi-State co-operative 

society under the bye-laws of such society. 

30. Expulsion of members.—(1) A multi-State co-operative society may, by resolution passed by a 
majority of not less than two-thirds of the members present and voting at a general meeting of members 
held for the purpose, expel a member for acts which are detrimental to the proper working of the society: 

Provided  that  the  member  concerned  shall  not  be  expelled  unless  he  has  been  given  a  reasonable 

opportunity of making representation in the matter. 

(2) No member of the multi-State co-operative society, who has been expelled under sub-section (1), 
shall be eligible for re-admission as a member of that society, for a period of one year from the date of 
such expulsion. 

31.  Vote  of  members.—Every  member  of  a  multi-State  co-operative  society,  including  a  member 

who is an employee of such society, shall have one vote in the affairs of the society: 

Provided that— 

(a) a member who is an employee of such society shall not be entitled to vote— 

(i) at the election of a member of the board of such society; 

(ii)  in  any  general  meeting  convened  for  framing  the  bye-laws  of  such  society  or  any 

amendments thereto; 

(b) in the case of an equality of votes, the chairperson shall have a casting vote; 

(c)  where  any  of  the  authorities,  multi-State  co-operative  society  or  a  co-operative  society 

referred  to  in  clauses  (b)  to  (g)  of  sub-section  (1)  of  section  25  is  a  member  of  a  multi-State               
co-operative society, each person nominated by such authority or society, on the board in accordance 
with the provisions contained in this Act and the rules, shall, have one vote; 

(d) a multi-State co-operative society, the membership of which include co-operative societies or 
other multi-State co-operative society, may provide in its bye-laws for an equitable system of voting 
having  regard  to  the  membership  of,  and  the  extent  of  business  carried  on  by  such  co-operative  
societies or multi-State co-operative  societies. 

32. Manner of exercising vote.—Every member of a multi-State co-operative society shall exercise 

his vote in person and no member shall be permitted to vote by proxy: 

Provided  that  a  multi-State  co-operative  society  or  a  co-operative  society  or  any  other  institution 
which is a member  of any other  multi-State co-operative  society may, subject to the provisions of sub-
section (3) of section 38 and the rules, appoint its representative to vote on its behalf in the affairs of such 
multi-State co-operative society. 

33. Restriction on holding of shares.—No member, other than the authorities referred to in clauses 
(c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, 
shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth 
thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society. 

34. Restriction on transfer of shares or interest.—The transfer of share or interest of a member in 
the  capital  of  a  multi-State  co-operative  society  shall  be  subject  to  such  conditions  as  to  maximum 
holding as specified in section 33. 

35.  Redemption  of  shares.—(1)  Shares  held  in  a  multi-State  co-operative  society  by  any  of  the 
authorities  referred  to  in  clauses  (c)  to  (g)  of  sub-section  (1)  of  section  25  shall  be  redeemable  in 
accordance with the bye-laws of such multi-State co-operative society and in a case where the bye laws 
do  not  contain  any  provision  in  this  regard,  in  such  manner  as  may  be  agreed  upon  between  the                      
multi-State co-operative society and such authority. 

(2) The redemption of shares referred to in sub-section (1) shall be on the face value of the shares. 

16 

 
36.  Transfer  of  interest  on  death  of  members.—(1)  On  the  death  of  a  member,  a  multi-State                     

co-operative society may transfer the share or interest of the deceased member to the person nominated in 
accordance with the bye-law  made in this behalf or, if there is no person nominated, to such person as 
may  appear  to  the  board  to  be  the  heir  or  legal  representative  of  the  deceased member,  or  pay  to  such 
nominee, heir or legal representative, as the case may be, a sum representing the value of such member’s 
share or interest as ascertained in accordance with the rules: 

Provided that no such transfer or payment shall be made except with the consent of the nominee, heir 

or legal representative, as the case may be. 

(2)  A  multi-State  co-operative  society  shall,  unless  within  six  months  of  the  death  of  the  member 
prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case 
may be, all other moneys due to the deceased member from the society. 

(3)  All  transfers  and  payments  made  by  a  multi-State  co-operative  society  in  accordance  with  the 
provisions of this section shall be valid and effectual against any demand made upon the society by any 
other person. 

37. Liabilities of past member and estate of deceased member.—(1) Subject to the provisions of 
sub-section (2), the liability of a past member or of the estate of a deceased member of a multi-State co-
operative society for the debts of the society as they existed,— 

(a) in the case of a past member, on the date on which he ceased to be a member; 

(b) in the case of a deceased member, on the date of his death, 

shall continue for a period of two years from such date. 

(2) Notwithstanding anything contained in sub-section (1), where a multi-State co-operative society is 
ordered to be wound up under section 86, the liability of a past member who ceased to be a member or of 
the estate of a deceased member who died within two years immediately preceding the date of the order 
of  winding  up,  shall  continue  until  the  entire  liquidation  proceedings  are  completed,  but  such  liability 
shall  extend  only  to the debts  of  the  society  as  they  existed on  the  date  of  cessation  of  membership  or 
death, as the case may be. 

CHAPTER V 

DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIES 

38.  Constitution,  powers and  functions  of general body.—(1) The  general  body  of  a  multi-State 

co-operative society shall consist of all the members of such society: 

Provided that where the bye-laws of a multi-State co-operative society provide for the constitution of 
a smaller body consisting of delegates of members of the society elected or selected in accordance with 
such bye-laws, that smaller body shall exercise such powers of the general body as may be prescribed or 
as maybe specified in the bye-laws of the society. 

(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-

State co-operative society shall vest in the general body of its members: 

Provided  that  nothing  contained  in  this  sub-section  shall  affect  the  exercise  by  the  board  or  any 
officer of a multi-State co-operative society of any power conferred on such board or such officer by this 
Act or the rules or the bye-laws. 

(3)  Where  in  any  meeting  of  the  general  body  or  the  board  of  a  multistate  co-operative  society,  a                   

co-operative  society  or  another  multi-State  co-operative  society  is  to  be  represented,  such  co-operative 
society  or  other  multi-State  co-operative  society  shall  be  represented  in  such  meeting  only  through  the 
Chairperson or the president or the Chief Executive or a member of the board of such co-operative society 
or other multi-State co-operative society, as the case may be, if such member is so authorised by the board 
and where there is no board of such  co-operative   society or other  multi-State co-operative  society, for 
whatever  reasons,  through  the  administrator,  by  whatever  name  called,  of  such  co-operative  society  or 
other multistate co-operative  society: 

Provided that where the bye-laws of a multi-State co-operative society provide for representation of 
other institutions in  any  meeting  of  general  body  or the  board  of  such  multi-State co-operative  society, 
such institutions shall be represented through its nominee. 

17 

 
39.  Annual  general  meeting  of  general  body.—(1)  The  board  of  every  multi-State  co-operative 
society shall, within such period as may be prescribed, and not later than six months after the close of the 
corresponding year, call the annual general meeting in the manner prescribed for the purpose of— 

(a) consideration of the audited statement of accounts; 

(b) consideration of the audit report and annual report; 

(c) consideration of audit compliance report; 

(d) disposal of net profits; 

(e) review of operational deficit, if any; 

(f) creation of specific reserves and other funds; 

(g) approval of the annual budget; 

(h) review of actual utilisation of reserve and other funds; 

(i) approval of the long-term perspective plan and the annual operational plan; 

(j) review of annual report and accounts of subsidiary institution, if any; 

(k) expulsion of members; 

(l) list of employees who are relatives of members of the board or of the Chief Executive; 

(m) amendment of bye-laws, if any; 

(n) formulation of code of conduct for the members of the board and officers; 

(o) election of members of the board, if any. 

(2) Where the board of a multi-State co-operative society fails to convene the annual general meeting 
within the period specified in sub-section (1), the Central Registrar or the person authorised by him in this 
behalf shall be competent to convene such annual general meeting within a period of ninety days from the 
date of expiry of the period mentioned in that sub-section and the expenditure incurred on such meeting 
shall be borne by the society. 

(3) At every annual general meeting of a multi-State co-operative society, the board shall lay before 
the  society  a  statement  showing  the  details  of  the  loans  or  goods  on  credit,  if any,  given  to  any  of  the 
members of the board or to the spouse or a son or daughter of a member of the board during the preceding 
year or outstanding against him or against such spouse or son or daughter of the member of the board. 

40.  Special  general  meeting  of  general  body.—(1) The  Chief  Executive  may,  at any  time,  on the 
direction of the board, call a special general meeting of the society and shall call such meeting within one 
month  after  the  receipt  of  a  requisition  in  writing  from  the  Central  Registrar  or  from  such  member  or 
members or a proportion of the total number of members, as may be provided in the bye-laws. 

(2) If a special general meeting of a multi-State co-operative society is not called in accordance with 
the requisition referred to in subsection(1), the Central Registrar or any person authorised by him in this 
behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called 
by  the  Chief  Executive  in  accordance  with  the  provisions  of  that  sub-section  and  the  Central  Registrar 
may  order  that  the  expenditure  incurred  in  calling  such  meeting  shall  be  paid  out  of  the  funds  of  the 
society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible 
for the refusal or failure to convene the special general meeting. 

41. Board of directors.—(1) Subject to the provisions of this Act and rules, there shall be aboard of 
directors for every multi-State co-operative society consisting of such number of members as specified in 
sub-section(3). 

(2)  The  members  of  a  multi-State  co-operative  society,  by  a  resolution  in  a  general  meeting,  shall 

elect directors who shall be members of board. 

(3) The board shall consist of such number of directors as may be specified in the bye-laws: 

Provided that the maximum number of directors in no case shall exceed twenty-one: 

18 

 
Provided further that the board may co-opt two directors in addition to twenty-one directors specified 

in the first proviso: 

Provided  also  that  the  functional  directors  in  the  national  co-operative  societies  shall  also  be  the 
members of the board and such members shall be excluded for the purpose of counting the total number 
of directors specified in the first proviso. 

42.  Association  of  employees  in  management  decision  making  process.—Every  multi-State               

co-operative  society  shall  devise  such  procedure,  as  may  be  specified  in  the  bye-laws  or  in  the 
administrative instructions of such society, for the association of the representatives of employees of such 
multi-State  co-operative  societies  at  such  level  or  bodies  as  may  be  specified  in  the  bye-laws  or  the 
instructions issued in this regard, in the management decision making process. 

43.  Disqualifications  for  being  a  member  of  board.—(1)  No  member  of  any  multi-State                      

co-operative society or nominee of a member, society or a national co-operative society shall be eligible 
for  being  chosen  as,  or  for  being,  a  member  of  the  board  of  such  multi-State  co-operative  society  or  a 
national co-operative society, or of any other co-operative society to which the multi-State co-operatives 
society is affiliated, if such member— 

(a) has been adjudged by a competent court to be insolvent or of unsound mind; 

(b) is concerned or participates in the profits of any contract with the society; 

(c) has been convicted for an offence involving moral turpitude; 

(d) holds any office or place of profit under the society: 

Provided that the Chief Executive or such full time employee of the society as may be notified by the 
Central Government from time to time or a person elected by the employees of such society to represent 
them on the board of such society shall be eligible for being chosen as, or for being, a member of such 
board; 

(e) has been a member of the society for less than twelve months immediately preceding the date 

of such election or appointment; 

(f) has interest in any business of the kind carried on by the society of which he is a member; 

(g) has taken loan or goods on credit from the society of which he is a member, or is otherwise 
indebted to such society and after the receipt of a notice of default issued to him by such society, has 
defaulted— 

(i) in repayment of such loan or debt or in payment of the price of the goods taken on credit, 
as the case may be, within the date fixed for such repayment or payment or where such date is 
extended, which in no case shall exceed six months, within the date so extended, or 

(ii) when such loan or debt or the price of goods taken on credit is to be paid in instalments, 
in payment of any instalment, and the amount in default or any part thereof has remained unpaid 
on the expiry of six months from the date of such default: 

Provided that a member of the board who has ceased to hold office as such under this clause shall not 
be eligible, for a period of one year, from the date on which he ceased to hold office, for re-election as a 
member of the board of the multi-State co-operative society of which he was a member or for the election 
to the board of any other multi-State co-operative society; 

(h)  is  a  person  against  whom  any  amount  due  under  a  decree,  decision  or  order  is  pending 

recovery under this Act; 

(i)  is  retained  or  employed  as  a  legal  practitioner  on  behalf  of  or  against  the  multi-State  co-
operative  society,  or  on  behalf  of  or  against  any  other  multi-State  co-operative  society  which  is  a 
member of the former society. 

Explanation.—For the purposes of this clause, “legal practitioner” has the same meaning as in clause 

(i) of sub-section (1) of section2 of the Advocates Act, 1961 (25 of 1961); 

(j) has been convicted for any offence under this Act; 

(k) is disqualified for being a member under section 29; 

19 

 
(l) has been expelled as a member under section 30; 

(m)  absents  himself  from  three  consecutive  board  meetings  and  such  absence  has  not  been 

condoned to by the board; 

(n) absents himself from three consecutive general body meeting sand such absence has not been 

condoned by the members in the general body. 

(2) A person shall not be eligible for being elected as member of board of a multi-State co-operative 

society for a period of five years if the board of such multi-State co-operative society fails— 

(a) to conduct elections of the board under section 45; or 

(b) to call the annual general meeting under section 39; or 

(c) to prepare the financial statement and present the same in the annual general meeting. 

44. Prohibition to hold office of chairperson or president or vice-chairperson or vice president 
in  certain  cases.—(1)  No  member  of  a  board  shall  be  eligible  to  be  elected  as  the  chairperson  or 
president or vice-chairperson or vice-president of a multi-State co-operative society if such member is a 
Minister in the Central Government or a State Government. 

(2) No member of a board shall be eligible to be elected as the chairperson or president of a multi-
State co-operative society, after he has held the office as such during two consecutive terms, whether full 
or part: 

Provided  that  a  member  who  has  ceased  to  hold  the  office  of  the  chairperson  or  president 

continuously for one full term shall again be eligible for election to the office as such. 

Explanation.—where  any  member  holding  the  office  of  the  chairperson  or  president  at  the 
commencement  of  this  Act  is  again  elected  to  that  office  after  such  commencement,  he  shall  for  the 
purpose of this section, be deemed to have held office for one term before such election. 

45. Elections of members of board.—(1) The conduct of elections to the board of a multi-State co-

operative society shall be the responsibility of the existing board. 

(2)  The  election  of  members  of  board  shall  be  held  by  secret  ballot  in  the  manner  as  may  be 

prescribed. 

(3) The election of the members of the board shall be held in the general meeting of the members of 

the multi-State co-operative society. 

(4) The elected members of the board shall, if the bye-laws of such society permit, be eligible for re-

election. 

(5) The term  of  office  of  the  elected  members  of the  board  shall be such,  not  exceeding  five  years 

from the date of elections, as maybe specified in the bye-laws of a multi-State co-operative society: 

Provided  that  elected  members  shall  continue  to  hold  office  till  their  successors  are  elected  or 

nominated under the provisions of this Act or the rules or bye-laws and assume charge of their office. 

(6)  Where  the  board  fails  to  conduct  election  of  the  members  of  board,  the  Central  Registrar  shall 

hold the election within a period of ninety days from the date when such election became due. 

(7) No person shall be eligible to be elected as a member of the board of a multi-State co-operative 

society unless he is a member of the general body of that society. 

(8) The expenses for holding election by the Central Registrar shall be borne by the multi-State co-

operative society. 

(9) The Central Government may make rules generally to provide for or to regulate matters in respect 

of election of members of the board. 

46. Holding of office in co-operative society.—Notwithstanding anything contained in this Act, no 
person shall be eligible to hold, at the same time, office of a president or chairperson or vice-president or 
vice-chairperson on the board of more than two multistate co-operative societies. 

47. Removal of elected members by general body.—An elected member of a board, who has acted 
adversely to the interests of multi-State co-operative society, may on the basis of a report of the Central 

20 

 
Registrar  or  otherwise  be  removed  from  the  board  upon  are  solution  of  the  general  body  passed  at  its 
meeting by a majority of not less than two-third of the members present and voting at the meeting: 

Provided  that  the  member  concerned  shall  not  be  removed  unless  he  has  been  given  a  reasonable 

opportunity of making a representation in the matter. 

48.  Nominee  of  Central  Government  or  State  Government  on  board.—(1)  Where  the  Central 
Government  or  a  State  Government  has  subscribed  to  the  share  capital  of  a  multi-State  co-operative 
society, the Central Government or the State Government, as the case maybe, or any person authorised by 
the Central Government or the State Government shall have right to nominate on the board such number 
of persons as its members on the following basis, namely:— 

(a) where the total amount of issued equity share capital held by the Central Government or the 
State Government is less than twenty six per cent. of the total issued equity share capital, one member 
of the board; 

(b) where the total amount of issued equity share capital held by the Central Government or the 
State Government is twenty-six per cent. or more but less than fifty-one per cent. of the total issued 
equity share capital, two members of the board; 

(c) where the total amount of issued equity share capital held by the Central Government or the 
State Government is fifty-one per cent. or more of the total issued share capital, three members of the 
board: 

Provided that the number of such nominated persons shall not exceed one third of the total number of 

members of the board: 

Provided  further  that  where  the  Central  Government  or  a  State  Government  has  guaranteed  the 
repayment of principal and payment of interest on debentures issued by a multi-State co-operative society 
or has guaranteed the repayment of principal and payment of interest on loans and advances to a multi-
State  co-operative  society  or  has  given  any  assistance  byway  of  grants  or  otherwise  to  a  multi-State                  
co-operative society, the Central Government or the State Government in this behalf, as the case may be, 
or any person authorised by the Central Government, shall have the right to nominate person on the board 
of such a society in the manner as may be prescribed. 

(2) A person nominated under this section shall hold office during the pleasure of the Government by 

which he has been so nominated. 

49.  Powers  and  functions  of  board.—(1)  The  board  may  exercise  all  such  powers  as  may  be 

necessary or expedient for the purpose of carrying out its functions under this Act. 

(2)  Without  prejudice  to  the  generality  of  the  foregoing  powers,  such  powers  shall  include  the 

power— 

(a) to admit members; 

(b)  to  interpret  the  organisational  objectives  and  set  up  specific  goals  to  be  achieved  towards 

these objectives; 

(c) to make periodic appraisal of operations; 

(d) to appoint and remove a Chief Executive and such other employees of the society as are not 

required to be appointed by the Chief Executive; 

(e)  to  make  provisions  for  regulating  the  appointment  of  employees  of  the  multi-State  co-
operative  society  and  the  scales  of  pay,  allowances  and  other  conditions  of  service  of,  including 
disciplinary action against such employees; 

(f) to place the annual report, annual financial statements, annual plan and budget for the approval 

of the general body; 

(g) to consider audit and compliance report and place the same before the general body; 

(h) to acquire or dispose of immovable property; 

(i) to review membership in other co-operatives; 

(j) to approve annual and supplementary budget; 

21 

 
(k) to raise funds; 

(l) to sanction loans to the members; and 

(m) to take such other measures or to do such other acts as may be prescribed or required under 

this Act or the bye-laws or as maybe delegated by the general body. 

50.  Meeting  of  board.—(1)  The  Chief  Executive  shall  convene  the  meetings  of  the  board  at  the 

instance of the chairperson or president of the multi-State co-operative society. 

(2) The total number of meetings of the board in a year and the venue of meetings as may be specified 

in the bye-laws: 

Provided that the board shall meet at least once in every quarter: 

Provided further that not more than two persons may be invited by the board in its meetings. 

(3) The  Chairperson,  or if for  any  reason,  he is  unable  to  attend a  meeting  of  the  board,  any  other 
member  of  the  board  chosen  by  the  members  of  the  board  present  from  amongst  themselves  at  the 
meeting, shall preside at the meeting. 

51. Chief Executive.—(1) There shall be a Chief Executive, by whatever designation called, of every 
multi-State co-operative society to be appointed by the board and he shall be a full-time employee of such 
multi-State co-operative society. 

(2) The Chief Executive shall be a member of the board and of the Executive Committee and such 

other committees or sub committees as may be constituted under sub-section (1) of section53. 

(3) Where the Central Government or the State Government holds fifty-one per cent. or more of the 

equity  share  capital  or  of  total  shares  of  the  multi-State  co-operative  society,  the  salary  and                          
allowances  payable  to  and  other  terms  and  conditions  of  service  including  pension,  gratuity  and  other 
retirement benefits of the Chief Executive shall be such as may be prescribed. 

52.  Powers  and  functions  of  Chief  Executive.—The  Chief  Executive  shall  under  the  general 
superintendence,  direction  and  control  of  the  board,  exercise  the  powers  and  discharge  the  functions 
specified below, namely:— 

(a) day-to-day management of the business of the multi-State co-operative society; 

(b) operating the account of the  multi-State co-operative  society and be responsible for making 

arrangements for safe custody of cash; 

(c) signing on the documents for and on behalf of the multi-State co-operative society; 

(d)  making  arrangements  for  the  proper  maintenance  of  various  books  and  records  of  the                   

multi-State  co-operative  society  and  for  the  correct  preparation,  timely  submission  of  periodical 
statements and returns in accordance with the provisions of this Act, the rules and the bye-laws; 

(e) convening meetings of the general body of the multi-State co-operative society, the board and 
the Executive Committee and other committees or sub-committees constituted under sub-section (1) 
of section 53 and maintaining proper records for such meetings; 

(f) making appointments to the posts in the  multi-State co-operative  society in accordance with 

the bye-laws; 

(g) assisting the board in the formulation of policies, objectives and planning; 

(h)  furnishing  to  the  board  periodical  information  necessary  for  appraising  the  operations  and 

functions of the multi-State co-operative society; 

(i) appoint the person to sue or be sued on behalf of the multi-State co-operative society; 

(j)  present  the  draft  annual  report  and  financial  statement  for  the  approval  of  the  board  within 

thirty days of closure of the financial year; 

(k)  performing  such  other  duties,  and  exercising  such  other  powers,  as  may  be  specified  in the 

bye-laws of the multi-State co-operative society. 

22 

 
53.  Committees  of  board.—(1)  The  board  may,  subject  to  such  conditions  as  may  be  prescribed, 
constitute  an  Executive  Committee  and  other  committees  or  sub  committees  as  may  be  considered 
necessary: 

Provided  that  other  committees  or  sub-committees,  other  than  the  Executive  Committee  shall  not 

exceed three. 

(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall 

perform  such  functions  as  are  assigned  to  it  in  accordance  with  the  bye-laws  of  the  multi-State                            
co-operative society. 

54. Securing possession of records, etc.—(1) If— 

(a) the records, including registers and books of account of a multi-State co-operative society are 
likely to be tampered with or destroyed or the funds or other property of such society are likely to be 
mis-appropriated; or 

(b)  the  board  of  a  multi-State  co-operative  society  is  reconstituted  at  a  general  meeting  of  the 

society; or 

(c)  a  multi-State  co-operative  society  is  ordered  to  be  wound  up  under  section  86  and  the 
outgoing members of the board refuse to handover charge of the records and property of the society to 
those having or entitled to receive such charge, 

the  Chief  Executive  may  apply  to  the  magistrate  within  whose jurisdiction the  multi-State  co-operative  
society functions for securing the records and property of the society. 

(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any 
police officer not below the rank of a sub-inspector to enter and search any place where such records and 
property are kept or are believed to be kept and to seize such records and property; and the records and 
property so seized shall be handed over to the new board or the liquidator, as the case maybe. 

(3)  Every  such  search  and  seizure  shall  be  made  in  accordance  with  the  provisions  of  the  Code  of 

Criminal Procedure, 1973 (2 of 1974). 

CHAPTER VI 

PRIVILEGES OF MULTI-STATE CO-OPERATIVE SOCIETIES 

55. Charge and set-off in respect of share or contribution or interest of members.—A multi-State 
co-operative society shall have a charge on the share or contribution or interest in the capital and on the 
deposits  of  a  member  or  past  or  deceased  member  and  on  any  dividend,  bonus  or  profits  payable  to  a 
member or past member or the estate of a deceased member in respect of any debt due from such member 
or past member or the estate of such deceased member to the society and may set-off any sum credited or 
payable to a member or past member or the estate of deceased member in or towards payment of any such 
debt. 

56.  Share of  contribution  or  interest  not liable to attachment.—(1)  Subject to  the  provisions  of 
section 55, the share or contribution or interest of a member or past or deceased member in the capital of 
a multi-State co-operative society shall not be liable to attachment or sale under any decree or order of 
any court in respect of any debtor liability incurred by such member, and an official assignee or a receiver 
under  any  law  relating  to  insolvency  shall  not  be  entitled  to,  or  have  any  claim  on,  such  share  or 
contribution or interest. 

(2) The  reserve  fund,  or the  bad  debt  reserves, or the  provident  fund  of  the  employees,  of  a  multi-
State co-operative society invested by such society in accordance with the provision of this Act and the 
bye-laws shall not be liable to attachment under any decree or order of a court in respect of any debt or 
liability incurred by the society. 

57.  Register  of  members.—Any  register  or  list  of  members  or  shares  kept  by  any  multi-State  co-
operative  society  shall  be  prima  facie  evidence  of  any  of  the  following  particulars  entered  therein, 
namely:— 

(a) the date on which any person entered in such register or list became a member; or 

(b) the date on which any such person ceased to be a member. 

23 

 
58. Admissibility of copy of entry as evidence.—(1) A copy of any entry in a book of a multi-State 
co-operative society regularly kept in the course of its business shall, if certified in such manner as may 
be  prescribed,  be  received  in  any  suit  or  legal  proceedings  as  prima  facie  evidence  of  the  existence  of 
such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in 
every case where, and to the same extent, as the original entry itself if admissible. 

(2)  No  officer  of  a  multi-State  co-operative  society  and  no  officer  in  whose  office  the  books  of  a 
multi-State co-operative  society are deposited after liquidation shall, in any legal proceedings to which 
the  society  or  the  liquidator  is  not  a  party,  be  compelled  to  produce  any  of  the  society’s  books  or 
documents the contents of which can be proved under this section, or to appear as a witness to prove the 
matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made 
for a special cause. 

59. Exemption from compulsory registration of instruments.—Nothing in clauses (b) and (c) of 

sub-section (1) of section 17 of the Registration Act, 1908 (16 of 1908) shall apply to— 

(a) any instrument relating to shares in a multi-State co-operative society notwithstanding that the 

assets of the society consist in whole or in part of immovable property; or 

(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or 
extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the 
holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, 
conveyed or otherwise transferred the whole or part of its immovable property or any interest therein 
to trustees upon trust for the benefit of the holders of such debentures; or 

(c) an endorsement upon transfer of any debenture issued by any such society. 

60. Deduction from salary to meet multi-State co-operative society’ s claim in certain cases.—(1) 
Notwithstanding anything contained in any law for the time being in force, a member of a multi-State co-
operative  society  may  execute  an  agreement  in  favour  of  that  society  providing  that  his  employer 
disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable 
to  him,  such  amount  as  may  be  specified  in  the  agreement  and  to  pay  the  amount  so  deducted  to  the 
society in satisfaction of any debt or other demand the member owes to the society. 

(2) On the execution of such agreement, the employer disbursing the salary or wages of the members 
shall, if so required by the multi-State co-operative society, by a requisition in writing and so long as the 
society does not intimate that the whole of such debt or other demand has been paid, make the deduction 
in  accordance  with  the  agreement  and  pay  the  amount  so  deducted  to  the  society  within  a  period  of 
fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages 
payable on the  day  as  required  under  the  Payment  of Wages  Act,  1936 (4 of 1936), and such  payment 
shall be valid discharge of the employer for his liability to pay the amount deducted. 

(3) If after the receipt of a requisition made under sub-section (2), the employer disbursing the salary 
or wages of the member at any time fails to deduct the amount specified in the requisition from the salary 
or  wages  payable  to  the  member  concerned  or  makes  default  in  remitting  the  amount  deducted  to  the 
multi-State  co-operative  society,  the  society  shall  be  entitled  to  recover  any  such  amount  from  such 
employer as arrears of land revenue and the amount so due from such employer shall rank in priority in 
respect of the liability of such employer equal to that of the salary or wages in arrears. 

61. Government aid to multi-State co-operative societies.—Notwithstanding anything contained in 
any law for the time being in force, the Central Government or a State Government, on receipt of request 
from a multi-State co-operative society and with a view to promoting co-operative movement, may,— 

(a) subscribe to the share capital of a multi-State co-operative society; 

(b) give loans or make advances to a multi-State co-operative society; 

(c) guarantee the repayment of principal and payment of interest on debentures issued by a multi-

State co-operative society; 

(d) guarantee the repayment of share capital of a  multi-State co-operative society and dividends 

thereon at such rates as may be specified by the Central Government or the State Government; 

(e)  guarantee  the  repayment  of  principal  and  payment  of  interest  on  loans  and  advances  to  a 

multi-State co-operative society; 

24 

 
(f) give financial assistance in any other form, including subsidies, to any multi-State co-operative 

society; and 

(g) provide aid to any other multi-State co-operative society on such terms and conditions as may 

be prescribed. 

PROPERTIES AND FUNDS OF MULTI-STATE CO-OPERATIVE SOCIETIES 

CHAPTER VII 

62. Funds not to be divided by way of profit.—(1) No part of the funds, other than net profits, of a 
multi-State  co-operative  society  shall  be  divided  by  way  of  bonus  or  dividend  or  otherwise  distributed 
among its members. 

(2) The net profits of a multi-State co-operative society referred to in sub-section (1) in respect of a 
society  earning  profits  shall  be  calculated  by  deducting  from  the  gross  profit  for  the  year,  all  interest 
accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on 
loans  and  deposits,  audit  fees,  working  expenses  including  repairs,  rent,  taxes  and  depreciation,  bonus 
payable  to  employees  under  the  law  relating  to  payment  of  bonus  for  the  time  being  in  force,  and 
equalisation fund for such bonus, provision for payment of income-tax and making approved donations 
under the Income-tax Act, 1961 (43 of 1961),development rebate, provision for development fund, bad 
debt fund, price fluctuation fund, dividend equalisation fund, share capital redemption fund, investment 
fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad 
debts and losses not adjusted against any fund created out of profit: 

Provided that such  society  may  add  to the  net  profits  for the  year interest  accrued  in the  preceding 

years, but actually recovered during the year: 

Provided  further  that  in  the  case  of  such  multi-State  co-operative  societies  as  do  not  have  share 
capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be 
dealt with in accordance with the bye-laws. 

63. Disposal of net profits.—(1) A multi-State co-operative society shall, out of its net profits in any 

year,— 

(a) transfer an amount not less than twenty-five per cent. to the reserve fund; 

(b) credit one per cent. to co-operative education fund maintained, by the National Co-operative 

Union of India Limited, New Delhi, in the manner as may be prescribed; 

(c) transfer an amount not less than ten per cent. to a reserve fund for meeting unforeseen losses. 

(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for 

all or any of the following purposes, namely:— 

(a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the 

prescribed limit; 

(b)  constitution  of,  or  contribution  to,  such  special  funds  including  education funds,  as  may  be 

specified in the bye-laws; 

(c) donation of amounts not exceeding five per cent. of the net profits for any purpose connected 
with the development of co-operative movement or charitable purpose as defined in section 2 of the 
Charitable Endowments Act, 1890 (6 of 1890); 

(d)  payment  of  ex  gratia  amount  to  employees  of  the  multi-State  co-operative  society  to  the 

extent and in the manner specified in the bye-laws. 

64. Investment of funds.—A multi-State co-operative society may invest or deposit its funds— 

(a) in a co-operative bank, state co-operative bank, co-operative land development bank or central 

co-operative bank; or 

(b) in any of the securities specified in section 20 of the Indian Trust Act, 1882 (2 of 1882); or 

(c)  in  the  shares  or  securities  of  any  other  multi-State  co-operative  society  or  any  co-operative 

society; or 

(d) in the shares, securities or assets of a subsidiary institution or any other institution; or 

25 

 
(e) with any other bank; or 

(f) in such other mode as may be provided in the bye-laws. 

Explanation.—For  the  purposes  of  clause  (e),  “bank”  means  any  banking  company  as  defined  in 

clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), and includes— 

(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); 

(ii) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary 

Banks) Act, 1959 (38 of 1959); 

(iii)  a  corresponding  new  bank  constituted  under  section  3  of  the  Banking  Companies 
(Acquisition  and  Transfer  of  Undertakings)  Act,  1970  (5  of  1970)  or  a  corresponding  new  bank 
constituted  under  section  3  of  the  Banking  Companies  (Acquisition  and  Transfer  of  Undertakings) 
Act, 1980 (40 of 1980). 

65.  Restriction  on  contribution.—No  multi-State  co-operative  society  shall  make  a  contribution, 
either  in  money  or  in  kind,  whether  directly  or  indirectly,  to  an  institution  which  has  an  object  of 
furtherance of the interest of a political party. 

66.  Restriction  on  loans.—(1)  A  multi-State  co-operative  society,  other  than  a  co-operative  bank, 

shall not make a loan to a member on the security of his share or on the security of a non-member. 

(2)  Notwithstanding  anything  contained  in  sub-section  (1),  a  multi-State  co-operative  society  may 

make a loan to a depositor on the security of his deposit. 

67. Restrictions on borrowing.—(1) A multi-State co-operative society may receive deposits 1[from 
its voting members] raise loans and receive grants from external sources to such extent and under such 
conditions as may be specified in the bye-laws: 

Provided  that  the  total  amount  of  deposits  and  loans  received  during  any  financial  year  shall  not 

exceed ten times of the sum of subscribed share capital and accumulated reserves: 

Provided  further  that  while  calculating  the  total  sum  of  subscribed  share  capital  and  accumulated 

reserves, the accumulated losses shall be deducted. 

1[Explanation.  — For  the  removal  of  doubts,  it  is  hereby  clarified  that  a  multi-State  co-operative 

society shall not be entitled to receive deposits from persons other than voting members.] 

(2) Subject to the provisions of sub-section (1), a multi-State co-operative society may accept funds 
or borrow funds for the fulfilment of its objects on such terms and conditions as are mutually contracted 
upon. 

(3)  A  multi-State  co-operative  society  may  issue  non-convertible  debentures  or  other  instruments 
subject to the provisions of any law for the time being in force to raise resources for the fulfilment of its 
objects to the extent of twenty-five per cent. of its paid-up share capital. 

68. Restrictions on other transactions with non-members.—Save as provided in sections 66 and 
67,  the transaction  of  a  multi-State co-operative  society  with  any  person  other than  a  member,  shall  be 
subject to such prohibitions and restrictions, if any, as may be specified in the bye-laws. 

69. Contributory provident fund.—(1) Subject to the provisions of the Employees’ Provident Fund 
and  Miscellaneous  Provisions  Act,  1952  (19  of  1952),  a  multi-State  co-operative  society  having  such 
number or class of employees as may be prescribed, may establish a contributory provident fund for the 
benefit  of  its  employees  to  which  shall  be  credited  all  contributions  made  by  the  employees  and  the 
society in accordance with the bye-laws of the society. 

(2) Monies standing to the credit of any contributory provident fund established by a multi-State co-

operative society under sub-section (1) shall not— 

(a) be used in the business of the society; 

(b) form part of the assets of the society; 

(c) be liable to attachment or be subject to any other process of any court or other authority. 

1. Ins. by Act 21 of 2019, s. 42 the Second Schedule (w.e.f. 21-2-2019). 

26 

 
                                                           
CHAPTER VIII 

AUDIT, INQUIRY, INSPECTIONAND SURCHARGE 

70. Appointment and remuneration of auditors.—(1) Every multi-State co-operative society shall 

cause to be audited by an auditor referred to in sub-section (2), its accounts at least once in each year. 

(2) Every multi-State co-operative society shall, at each annual general meeting, appoint an auditor or 
auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general 
meeting  and  shall,  within  seven  days  of  the  appointment,  give  intimation  thereof  to  every  auditor  so 
appointed: 

Provided  that  such  auditor  or  auditors  may  be  appointed  from  a  panel  of  auditors  approved  by  the 

Central Registrar or from a panel of auditors, if any, prepared by the multi-State co-operative society. 

(3)  Every  auditor  appointed  under  sub-section  (1)  shall,  within  thirty  days  of  the  receipt  from  the 
multi-State  co-operative  society  of  the  intimation  of  his  appointment,  inform  the  Central  Registrar  in 
writing that he has accepted, or refused to accept, the appointment. 

(4) A retiring auditor shall be re-appointed unless— 

(a) he is not qualified for re-appointment; 

(b) he has given the multi-State co-operative  society a notice in writing of his unwillingness to be 

re-appointed; 

(c) a resolution has been passed at the general meeting of members appointing some body instead 

of him or providing expressly that he shall not be re-appointed; or 

(d) where notice has been given of an intended resolution to appoint some person or persons in 
the place of a retiring auditor, and by reason of the death, incapacity or disqualification of that person 
or all those persons, as the case may be, the resolution cannot be proceeded with. 

(5)  Where  at  an  annual  general  meeting  no  auditors  are  appointed  or  re-appointed,  the  Central 

Registrar may appoint a person to fill the vacancy. 

(6)  First  auditor  or  auditors  of  a  multi-State  co-operative  society  shall  be  appointed  by  the  board 
within one month of the date of registration of such society and the auditor or auditors so appointed shall 
hold office until the conclusion of the first annual general meeting: 

Provided that— 

(a) the multi-State co-operative society may, at a general meeting, remove any such auditor or all 
or any of such auditors and appoint in his or their places any other person or persons who have been 
nominated  for  appointment  by  any  member  of  the  multi-State  co-operative  society  and  of  whose 
nomination notice has been given to the members of the multi-State co-operative society not less than 
fourteen days before the date of the meeting; and 

(b)  if  the  board  fails  to  exercise  its  powers  under  this  sub-section,  the  multi-State  co-operative  

society in the general meeting may appoint the first auditor or auditors. 

(7)(a) The multi-State co-operative society may fill any causal vacancy in the office of an auditor; but 

while any such vacancy continues, the remaining auditor or auditors, if any, may act: 

Provided that where such vacancy is caused by the resignation of an auditor, the vacancy shall only 

be filled by the multi-State co-operative society in general meeting. 

(b) Any auditor appointed in a causal vacancy shall hold office untilthe conclusion of the next annual 

general meeting. 

(8)  Any  auditor  appointed  under  this  section  may  be  removed  from  office  before  the  expiry  of  his 

term by the multi-State co-operative society in general meeting. 

(9) The remuneration of the auditors of a multi-State co-operative society— 

(a) in the case of an auditor appointed by the board or the Central Registrar may be fixed by the 

board or the Central Registrar, as the case may be; and 

27 

 
(b) subject to clause (a), shall be fixed by the multi-State co-operative society in general meeting 

or in such manner as the multi-State co-operative society in general meeting may determine. 

Explanation.—For  the  purposes  of  this  sub-section,  any  sums  paid  by  the  multi-State  co-operative 
society  in  respect  of  the  auditors’  expenses  shall  be  deemed  to  be  included  in  the  expression 
“remuneration”. 

71. Provision as to resolutions for appointing or removing auditors.—(1) A special notice shall be 
required for a resolution at an annual general meeting appointing as auditor a person other than a retiring 
auditor, or providing expressly that a retiring auditor shall not be reappointed. 

(2) On receipt of notice of such a resolution, the multi-State co-operative society shall forthwith send 

a copy thereof to the retiring auditor. 

(3)  Where  notice  is  given  of  such  a  resolution  and  the  retiring  auditor  makes  with  respect  thereto 
representations in writing to the multistate co-operative  society (not exceeding a reasonable length) and 
requests their notification to members of the multi-State co-operative society, the multi-State co-operative 
shall, unless the representations are received by it too late for it to do so,— 

(a) in any notice of the resolution given to members of the multi-State co-operative society, state 

the fact of the representations having been made; and 

(b) send a copy of the representation to every member of the multi-State co-operative society to 
whom notice of the meeting is sent, whether before or after the receipt of the representations by the 
multi-State co-operative society, 

and if a copy of the representations is not sent as aforesaid because they were received too late or because 
of  the  multi-State  co-operative  society’s  default,  the  auditor  may  (without  prejudice  to  his  right  to  be 
heard orally) require that the representations shall be read out at the meeting. 

72.  Qualifications  and  disqualifications  of  auditors.—(1)  A  person  shall  not  be  qualified  for 
appointment as an auditor of a multi-State co-operative society unless he is a chartered accountant within 
the meaning of the Chartered Accountants Act, 1949 (38 of1949). 

(2)  None  of  the  following  persons  shall  be  qualified  for  appointment  as  auditor  of  a  multi-State                   

co-operative society— 

(a) a body corporate; 

(b) an officer or employee of the multi-State co-operative society; 

(c)  a  person  who  is  a  member,  or  who  is  in  the  employment,  of  an  officer  or  employee  or  the 

multi-State co-operative society; 

(d)  a  person  who  is  indebted  to  the  multi-State  co-operative  society  or  who  has  given  any 
guarantee  or  provided  any  security  in  connection  with  the  indebtedness  of  any  third  person  to  the 
multi-State co-operative society for an amount exceeding one thousand rupees. 

(3) A person shall also not be qualified for appointment as an auditor of a multi-State co-operative 
society if he is, by virtue of sub-section (2), disqualified for appointment as an auditor of any other body 
corporate or multi-State co-operative society or co-operative society. 

(4) If an auditor becomes subject, after his appointment, to any of the disqualifications specified in 

sub-sections (2) and (3), he shall be deemed to have vacated his office as such. 

73.  Powers  and  duties  of  auditors.—(1)  Every  auditor  of  a  multi-State  co-operative  society  shall 
have  a  right  of  access  at  all  times  to  the  books,  accounts  and  vouchers  of  the  multi-State  co-operative  
society, whether kept at the head office of the  multi-State co-operative   society or elsewhere, and shall 
beentitled  to  require  from  the  officers  or  other  employees  of  the  multi-State  co-operative  society  such 
information and explanations as the auditor may think necessary for the performance of his duties as an 
auditor. 

(2) With out prejudice to provisions of sub-section (1), the auditor shall inquire,— 

(a)  whether  loans  and  advances  made  by  the  multi-State  co-operative  society  on  the  basis  of 
security  have  been  properly  secured  and  whether  the  terms  on  which  they  have  been  made  are  not 
prejudicial to the interests of the multi-State co-operative society or its members; 

28 

 
(b) whether transactions of the multi-State co-operative society which are represented merely by 

book entries are not prejudicial to the interests of the multi-State co-operative society; 

(c) whether personal expenses have been charged to revenue account; and 

(d)  where  it  is  stated  in  the  books  and  papers  of  the  multi-State  co-operative  society  that  any 
shares  have  been  allotted  for  cash,  whether  case  has  actually  been  received  in  respect  ofsuch 
allotment, and if no cash has actually been so received ,whether the position as stated in the account 
books and the balance-sheet is correct, regular and not misleading. 

(3)  The  auditor  shall  make  a  report  to  the  members  of  the  multi-State  co-operative  society  on  the 
accounts  examined  by  him  and  on  every  balance-sheet  and  profit  and  loss  account  and  on  every  other 
document required to be part or annexed to the balance-sheet or profit and loss account, which are laid 
before the multi-State co-operative society in general meeting during his tenure of office, and the report 
shall  state  whether, in  his opinion  and to  the  best  of his  information  and  according  to  the explanations 
given to him, the said accounts give the information required by this Act in the manner so required and 
give a true and fair view,— 

(a) in the case of the balance-sheet, of the state of the multi-State co-operative society’s affairs as 

at the end of its financial year;and 

(b) in the case of the profit and loss account, of the profit or loss for its financial year. 

(4) The auditor’s report shall also state— 

(a)  whether  he  has  obtained  all  the  information  and  explanations  which  to  the  best  of  his 

knowledge and belief were necessary for the purposes of his audit; 

(b)  whether,  in  his  opinion,  proper  books  of  account  have  been  kept  by  the  multi-State  co-
operative society so far as appears from his examination of those books, and proper returns adequate 
for  the  purposes  of  his  audit  have  been  received  from  branches  or  offices  of  the  multi-State  co-
operative society not visited by him; 

(c)  whether  the  report  on  the  accounts  of  any  branch  office  audited  by  a  person  other  than  the 
multi-State co-operative society’s auditor has been forwarded to him and how he has dealt with the 
same in preparing the auditor’s report; 

(d) whether the multi-State co-operative society’s balance-sheet and profit and loss account dealt 

with by the report are in agreement with the books of account and returns. 

(5) Where any of the matters referred to in clauses (a) and (b) of sub-section(3) or in clauses (a), (b), 
(c) and (d) of sub-section (4) is answered in the negative or with a qualification, the auditor’s report shall 
state the reason for the answer. 

74. Signature of audit report, etc.—Only the person appointed as an auditor of the multi-State co-
operative society shall sign the auditor’s report, or sign or authenticate any other document of the multi-
State co-operative society required by law to be signed or authenticated by the auditor. 

75.  Reading  and  inspection  of  auditor’s  report.—The  auditor’s  report  shall  be  read  before  the 
multi-State co-operative society in the general meeting and shall be open to inspection by any member of 
the multi-State co-operative  society. 

76. Right of auditor to attend general meeting.—All notices of, and other communications relating 
to, any general meeting of a multi-State co-operative  society, which any member of the multi-State co-
operative society is entitled to have sent to him, shall also be forwarded to the auditor of the multi-State 
co-operative society; and the auditor shall be entitled to attend any general meeting and to be heard at any 
general meeting which he attends on any part of the business which concerns him as auditor. 

77. Power of Central Government to direct special audit in certain cases.—(1) Where the Central 

Government is of the opinion— 

(a) that the affairs of any multi-State co-operative society are not being managed in accordance 
with  self-help  and  mutual  aid  and  co-operative  principles  or  prudent  commercial  practices;  or  with 
sound business principles; or 

(b) that any multi-State co-operative society is being managed in a manner likely to cause serious 

injury or damage to the interest of the trade, industry or business to which it pertains; or 

29 

 
(c)  that the  financial  position  of  any  multi-State  co-operative  society  is  such  as  to  endanger  its 

solvency, 

the  Central  Government  may  at  any  time  by  order  direct  that  a  special  audit  of  the  multi-State  co-
operative  society’s  accounts  for  such  period  or  periods  as  may  be  specified  in  the  order,  shall  be 
conducted and may by the same or a different order appoint either a chartered accountant as defined in 
clause  (b)  of  sub-section  (1)  of  section  2  of  the  Chartered  Accountants  Act,  1949  (38  of  1949)  or  the 
multi-State co-operative society’s auditor himself to conduct with special audit: 

Provided that the Central Government shall not order for special audit of a multi-State co-operative 
society’s accounts if that Government or the State Government either by itself or both hold less than fifty-
one per cent. of the paid up share capital or of the shares in such multi-State co-operative society. 

(2) The  chartered  accountant  or the  multi-State  co-operative  society’s  auditor appointed  under sub-
section  (1)  to  conduct  a  special  audit  as  aforesaid  is  hereafter  in  this  section  referred  to  as  the  special 
auditor. 

(3) The  special  auditor  shall have  the  same  powers and  duties  in  relation to the  special  audit  as  an 

auditor of a multi-State co-operative society has under section 73: 

Provided that the special auditor shall, instead of making his report to the members of the multi-State 

co-operative society, make the same to the Central Government. 

(4)  The  report  of  the  special  auditor  shall,  as  far  as  may  be,  include  all  the  matters  required  to  be 
included  in  the  auditors’  report  under  section  73  and,  if  the  Central  Government  so  directs,  shall  also 
include a statement on any other matter which may be referred to him by that Government. 

(5) The Central Government may by order direct any person specified in the order to furnish to the 
special auditor within such time as maybe specified therein such information or additional information as 
may be required by the special auditor in connection with the special audit. 

(6) On receipt of the report of the special auditor, the Central Government may take such action on 
the report as it considers necessary in accordance with the provisions of this Act or any other law for the 
time being in force: 

Provided that if the Central Government does not take any action on the report within four months 
from  the  date  of  its receipt,  that  Government  shall send  to the  multi-State  co-operative  society  either a 
copy  of,  or  relevant  extract  from,  the  report  with  its  comments  thereon  and  require  the  multi-State  co-
operative society either to circulate that copy or those extracts to the members or to have such copy or 
extracts read before the multi-State co-operative society at its next general meeting. 

(7)  The  expenses  of,  and  incidental  to,  any  special  audit  under  this  section  (including  the 
remuneration of the special auditor) shall be determined by the Central Government which determination 
shall be final  and  paid  by  the  multi-State  co-operative  society  and  in  default  of  such  payment,  shall  be 
recoverable from the multi-State co-operative society as an arrear of land revenue. 

78. Inquiry by Central Registrar.—(1) The Central Registrar may, on a request from a federal co-
operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of 
the members of the board or not less than one-fifth of the total number of members of a multi-State co-
operative  society  hold  an  inquiry  or  direct  some  person  authorised  by  him  by  order  in  writing  in  this 
behalf  to  hold  an  inquiry  into  the  constitution,  working  and  financial  condition  of  a  multi-State  co-
operative society: 

Provided that no inquiry under this sub-section shall be held unless a notice of not less than fifteen 

days has been given to the multi-State co-operative society. 

(2)  The  Central  Registrar  or  the  person  authorised  by  him  under  sub-section  (1)  shall  have  the 

following powers, namely:— 

(a) he shall at all reasonable times have free access to the books, accounts, documents, securities, 
cash and other properties belonging to or in the custody of the multi-State co-operative society and 
may summon any person in possession or responsible for the custody of any such books, accounts, 
documents, securities, cash or other properties to produce the same, at any place specified by him; 

(b) he may, notwithstanding any bye-law specifying the period of notice for a general meeting of 
the multi-State co-operative society, require the officers of the society to call a general meeting of the 

30 

 
society by giving notice of not less than seven days at such time and place at the headquarters of the 
society  to  consider  such  matters,  as  may  be  directed  by  him;  and  where  the  officers  of  the  society 
refuse or fail to call such a meeting, he shall have power to call it himself; 

(c) he may summon any person who is reasonably believed by him to have any knowledge of the 
affairs of the multi-State co-operative society to appear before him at any place at the headquarters of 
the society or any branch thereof and may examine such person on oath. 

(3)  Any  meeting  called  under  clause  (b)  of  sub-section  (2)  shall  have  all  the  powers  of  a  general 
meeting of the society called under the bye laws of the society and its proceedings shall be regulated by 
such bye-laws. 

(4) The Central Registrar shall, within a period of three months of the date of receipt of the report, 
communicate the report of inquiry to the multi-State co-operative society, the financial institutions, if any, 
to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is 
made. 

79. Inspection of multi-State co-operative societies.—(1) The Central Registrar may, on a request 
from  a federal  co-operative  to  which a  multi-State co-operative  society  is affiliated  or  a  creditor  or  not 
less than one-third of the members of the board or not less than one-fifth of the total number of members 
of a multi-State co-operative society by general or special order in writing in this behalf, inspector direct 
any  person  authorised  by  him  by  order  in  writing  in  this  behalf  to  make  an  inspection  into  the 
constitution, working and financial condition of a multi-State co-operative society: 

Provided  that  no  inspection  under  this  sub-section  shall  be  made  unless  a  notice  of  not  less  than 

fifteen days has been given to the multi-State co-operative society. 

(2)  (a)  For  the  purpose  of  inspection  under  sub-section  (1),  the  Central  Registrar  or  the  person 
authorised  by  him  under  that  subsection  shall  at  all  times  have  access  to  all  books,  accounts,  papers, 
vouchers, securities, stock and other property of that society and may, in the event of serious irregularities 
discovered during inspection, take them into custody and shall have power to verify the cash balance of 
the  society  and  subject  to  the  general  or  special  order  of  the  Central  Registrar  to  call  a  meeting  of  the 
board and also a general meeting of the society where such general meeting is, in his opinion, necessary. 

(b) Every officer or member of a multi-State co-operative society shall furnish such information with 
regard to the working of the society as the Central Registrar or the person making such inspection may 
require. 

(3)  A  copy  of  the  report  of  inspection  under  this  section  shall  be  communicated  to  the  multi-State     

co-operative society within a period of three months from the date of completion of such inspection. 

80. Inspection of books of indebted multi-State co-operative societies.—(1) The Central Registrar 
shall, on the application of a creditor of a multi-State co-operative society, inspect, or direct some person 
authorised by him by order in writing in this behalf to inspect, the books of the society: 

Provided that no such inspection shall be made unless the applicant— 

(a)  satisfies  the  Central  Registrar  that  the  debt  is  a  sum  then  due,  and  that  he  has  demanded 

payment thereof and has not received satisfaction within a reasonable time; 

(b)  deposits  with  the  Central  Registrar  such  sum  as  security  for  the  costs  of  the  proposed 

inspection as the Central Registrar may require. 

(2) The Central Registrar shall communicate the result of any such inspection to the creditor. 

81. Costs of inquiry and inspection.—Where an inquiry is held under section 78 or an inspection is 
made under section 79, the Central Registrar may apportion the costs, or such part of the costs, as he may 
think fit, between the multi-State co-operative society, the members or creditors demanding an inquiry or 
inspection, and the officers or former officers and the members or past members of that society: 

Provided that— 

(a) no order of apportionment of the costs shall be made under this section unless the society or 

the person liable to pay the costs there under has had a reasonable opportunity of being heard; 

(b) the Central Registrar shall state in writing under his own hand the grounds on which the costs 

are apportioned. 

31 

 
82. Recovery of costs.—Any sum awarded by way of costs under section 81 may be recovered, on 
application to  a  magistrate  having jurisdiction in the place  where the  person,  from  whom  the  money  is 
claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the 
same as if it were a fine imposed by himself. 

83.  Repayment,  etc.—(1)  If  in  the  course  of  an  audit,  inquiry,  inspection  or  the  winding  up  of  a 
multi-State co-operative society, it is found that any person, who is or was entrusted with the organisation 
or management of such society or who is or has at any time been an officer or an employee of the society, 
has made any payment contrary to this Act, or the bye-laws or has caused any deficiency in the assets of 
the  society  by  breach  of  trust  or  wilful  negligence  or  has  misappropriated  or  fraudulently  retained  any 
money or other property belonging to such society, the Central Registrar may, of his own motion or on 
the application of the board, liquidator or any creditor inquire himself or direct any person authorised by 
him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two 
years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, 
as the case may be: 

Provided  that  where  the  Central  Registrar  is  satisfied  that  such  inquiry  could  not  be  commenced 
during  the  period of two  years aforesaid on  account of  fraud  or  concealment  of  facts,  he  may  make  or 
direct the inquiry to be made within such period not exceeding six years from the date of the report of the 
audit, inspection or inquiry or the date of the order of winding up, as he thinks fit. 

(2) Where an inquiry is made under sub-section (1), the Central Registrar may, after giving the person 
concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the 
money  or  property  or  any  part  thereof,  with  interest  at  such  rate,  or  to  pay  contribution  and  costs  or 
compensation to such extent, as the Central Registrar may consider just and equitable. 

CHAPTER IX 

SETTLEMENT OF DISPUTES 

84.  Reference  of  disputes.—(1)  Notwithstanding  anything  contained in  any  other  law  for the time 

being  in  force, if  any  dispute  [other  than  a  dispute  regarding  disciplinary  action  taken  by  a  multi-State                  
co-operative society against its paid employee or an industrial dispute as defined in clause (k) of section 2 
of the Industrial Disputes Act, 1947 (14 of 1947)] touching the constitution, management or business of a 
multi-State co-operative society arises— 

(a)  among  members,  past  members  and  persons  claiming  through  members,  past  members  and 

deceased members, or 

(b) between a member, past members and persons claiming through a member, past member or 
deceased member and the multi-State co-operative society, its board or any officer, agent or employee 
of the multi-State co-operative  society or liquidator, past or present, or 

(c)  between  the  multi-State  co-operative  society  or  its  board  and  any  past  board,  any  officer, 
agent or employee, or any past officer, past agent or past employee, heirs or legal representatives of 
any deceased officer, deceased agent or deceased employee of the multi-State co-operative society, or 

(d) between the  multi-State co-operative  society and any other multi-State co-operative  society, 
between a multi-State co-operative society and liquidator of another multi-State co-operative society 
or  between  the  liquidator  of  one  multi-State  co-operative  society  and  the  liquidator  of  another                         
multi-State co-operative society, 

such dispute shall be referred to arbitration. 

(2)  For  the  purposes  of  sub-section  (1),  the  following  shall  be  deemed  to  be  disputes  touching  the 

constitution, management or business of a multi-State co-operative society, namely:— 

(a)  a  claim  by  the  multi-State  co-operative  society  for  any  debt  or  demand  due  to  it  from  a 
member or the nominee, heirs or legal representatives of a deceased member, whether such debt or 
demand be admitted or not; 

(b) a claim by a surety against the principal debtor where the multi-State co-operative society has 
recovered from the surety any amount in respect of any debt or demand due to it from the principal 
debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or 
not; 

32 

 
(c) any dispute arising in connection with the election of any officer of a multi-State co-operative 

society. 

(3)  If  any  question  arises  whether  a  dispute  referred  to  arbitration  under  this  section  is  or  is  not  a 
dispute  touching  the  constitution,  management  or  business  of  a  multi-State  co-operative  society,  the 
decision thereon of the arbitrator shall be final and shall not be called in question in any court. 

(4) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or 

decided by the arbitrator to be appointed by the Central Registrar. 

(5) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act, 
1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were 
referred for settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996. 

85. Limitation.—(1) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963), 
but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute 
referred to arbitration shall,— 

(a)  when  the  dispute  relates  to  the  recovery  of  any  sum  including  interest  thereon  due  to  a                     

multi-State  co-operative  society  by  a  member  thereof,  be  computed  from  the  date  on  which  such 
member dies or ceases to be a member of the society; 

(b) save as otherwise provided in clause (c), when the dispute relates to any act or omission on 
the part of any of the parties referred to in clause (b) or clause (c) or clause (d) of subsection (1) of 
section  84,  be  six  years  from  the  date  on  which  the  act  or  omission,  with  reference  to  which  the 
dispute arose, took place; 

(c) when the dispute is in respect of an election of an officer of a multi-State co-operative society, 

be one month from the date of the declaration of the result of the election. 

(2)  The  period  of  limitation  in  the  case  of  any  dispute,  except  those  mentioned  in  sub-section  (1), 
which  are  required  to  be  referred  to  arbitration  shall  be  regulated  by  the  provisions  of  the  Limitation 
Act,1963 (36 of 1963), as if the dispute were a suit and the arbitrator a civil court. 

(3) Notwithstanding anything contained in sub-sections (1) and (2), the arbitrator may admit a dispute 
after  the  expiry  of the  period  of  limitation, if the  applicant  satisfies the arbitrator  that  he  had  sufficient 
cause for not referring the dispute within such period. 

CHAPTER X 

WINDING UP OF MULTI-STATE CO-OPERATIVE SOCIETY 

86. Winding up of multi-State co-operative societies.—(1) If the Central Registrar, after audit has 
been conducted under section 70 or special audit has been conducted under section 77 or an inquiry has 
been held under section 78 or an inspection has been made under section 79, is of opinion that the society 
ought  to  be  wound  up,  he  may,  after  giving  the  society  a  reasonable  opportunity  of  making  its 
representations by order, direct it to be wound up. 

(2)  The  Central  Registrar  may,  of  his  own  motion  and  after  giving  the  multi-State  co-operative 
society a reasonable opportunity of making its representation, make an order directing the winding up of 
the multi-State co-operative society,— 

(a) where it is a condition of the registration of the society that the society shall consist of at least 

fifty members and the number of members has been reduced to less than fifty; or 

(b) where the multi-State co-operative society has not commenced working within a period of six 
months of the date of its registration or such extended period as the Central Registrar may allow in 
this behalf or has ceased to function in accordance with co-operative  principles. 

(3)  The  Central  Registrar  may  cancel  an  order  for  the  winding  up  of  a  multi-State  co-operative 

society, at any time, in any case where, in his opinion, the society should continue to exist. 

(4)  A  copy  of  such  order  shall  be  communicated  by  registered  post  to  the  multi-State  co-operative 

society and to the financial institutions, if any, of which the society is a member. 

(5)  Notwithstanding  anything  contained  in  this  section,  no  co-operative  bank  shall  be  wound  up 

except with the previous sanction, in writing of the Reserve Bank. 

33 

 
(6) Notwithstanding anything contained in this section, the Central Registrar shall make an order for 
the winding up of a  multi-State co-operative society, if the society, by a resolution passed by two-third 
majority of members present and voting in a general meeting decides for winding up of that society. 

87.  Winding  up  of  co-operative  bank  at  the  direction  of  Reserve  Bank.—Notwithstanding 
anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the 
winding up of a co-operative bank, if so required by the Reserve Bank in the circumstances mentioned in 
section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961). 

88. Reimbursement to the Deposit Insurance Corporation by liquidator.—Where a co-operative 
bank,  being  an  insured  bank  within  the  meaning  of  the  Deposit  Insurance  and  Credit  Guarantee 
Corporation  Act,  1961,  is  wound  up  and  the  Deposit  Insurance  Corporation  has  become  liable  to  the 
depositors  of  the  insured  bank  under  sub-section  (1)  of  section  16  of  that  Act,  the  Deposit  Insurance 
Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent 
and in the manner provided in section 21 of that Act. 

89. Liquidator.—(1) Where the Central Registrar has made an order under section 86for the winding 
up of multi-State co-operative society, the Central Registrar may appoint a liquidator for the purpose and 
fix his remuneration. 

(2)  A  liquidator  shall,  on  appointment,  take  into  his  custody  or  under  his  control  all  the  property, 
effects and actionable claims to which the multi-State co-operative society is or appears to be entitled and 
shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage 
to,  such  property,  effects  and  claims  and  he  may  carry  on  the  business  of  the  multi-State  co-operative 
society so far as may be necessary with the previous approval of the Central Registrar. 

(3)  Where  an  appeal  is  preferred  under  clause  (f)  of  sub-section  (1)  of  section  99,  an  order  for  the 
winding up of a multi-State co-operative society made under section 86 shall not operate thereafter until 
the order is confirmed in appeal: 

Provided  that  the  liquidator  shall  continue  to  have  custody  or  control  of  the  property,  effects  and 
actionable claims mentioned in subsection (2) and have authority to take the steps referred to in that sub-
section. 

(4) Where an order for the winding up of a multi-State co-operative society is set aside in appeal, the 

property, effects and action able claims of the society shall re-vest in the society. 

90. Powers of liquidator.—(1) Subject to any rules made in this behalf, the whole of the assets of a 
multi-State co-operative society in respect of which an order for winding up has been made, shall vest in 
the liquidator appointed under section 89 from the date on which the order takes effect and the liquidator 
shall have power to realise such assets by sale or otherwise. 

(2) Such liquidator shall also have power, subject to the control of the Central Registrar— 

(a)  to  institute  and  defend  suits  and  other  legal  proceedings  on  behalf  of  the  multi-State  co-

operative  society by the name of his office; 

(b) to determine from time to time the contribution (including debts due and costs of liquidation) 
to be made or remaining to be made by the members or past members or by the estates or nominees, 
heirs  or legal  representatives  of the  deceased  members  or by  any  officers  or  former  officers, to the 
assets of the multi-State co-operative society; 

(c)  to  investigate  all  claims  against  the  multi-State  co-operative  society  and  subject  to  the 

provisions of this Act, to decide questions of priority arising between claimants; 

(d) to pay claims against the multi-State co-operative society, including interest up to the date of 
winding  up  according  to  their  respective  priorities,  if  any,  in  full  or  rate  ably,  as  the  assets  of  the 
society may permit; and the surplus, if any, remaining after payment of the claims being applied in 
payment of interest from the date of such order or winding up at a rate fixed by him but not exceeding 
the contract rate in any case; 

(e)  to  determine by  what  persons  and in  what  proportions  the  costs  of  the liquidation  are to be 

borne; 

(f)  to  determine  whether  any  person  is  a  member,  past  member  or  nominee  of  a  deceased 

member; 

34 

 
(g) to give such directions in regard to the collection and distribution of the assets of the multi-
State  co-operative  society  as  may  appear  to  him  to  be  necessary  for  winding  up  the  affairs  of  that 
society; 

(h) to carry on the business of the multi-State co-operative society so far as may be necessary for 

the beneficial winding up of the same; 

(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or 
having or alleging to have any claim, present or future, whereby the multi-State co-operative society 
may be rendered liable; 

(j) to make any compromise or arrangement with any person between whom and the multi-State 

co-operative society there exists any dispute and to refer any such dispute for decision; 

(k) after consulting the members of the multi-State co-operative society, to dispose of the surplus, 

if any, remaining after paying the claims against the society, in such manner as may be prescribed; 

(l)  to  compromise  all  calls  or liabilities to  calls  and debts  and  liabilities  capable  of resulting  in 
debts,  and  all claims,  present  or  future,  certain  or  contingent,  subsisting  or  alleged  to  be  subsisting 
between  the  multi-State  co-operative  society  and  a  contributory  or  other  debtor  or  person 
apprehending liability to the multi-State co-operative society and all questions in any way relating to 
or affecting the assets or the winding up of the society on such terms as may be agreed and take any 
security for the discharge of any such call, liability, debt or claim and give a complete discharge in 
respect thereof. 

(3) When the affairs of a  multi-State co-operative  society have been wound up, the liquidator shall 
make a report to the Central Registrar and deposit the records of the society in such place as the Central 
Registrar may direct. 

91. Disposal of surplus assets.—The surplus assets, as shown in the report of a liquidator of a multi-

State co-operative society which is wound up,— 

(a)  may,  if  the  bye-laws  of  the  multi-State  co-operative  society  specify  the  purpose  for  which 

surplus shall be utilised, be utilised by the Central Registrar for the said purpose, and 

(b) if the bye-laws aforesaid do not specify the purpose, be divided by the Central Registrar with 
the  previous  sanction  of  the  Central  Government,  amongst  the  members  of  such  multi-State  co-
operative society in such manner as may be prescribed. 

92. Priority of contributions assessed by liquidator.—Notwithstanding anything contained in any 
law  relating  to insolvency,  the  contribution  assessed by  a  liquidator  shall  rank  next to  debts  due  to the 
Central Government or a State Government or a local authority in accordance with the order of priority in 
insolvency proceedings. 

93. Power of Central Registrar to cancel registration of a multi-State co-operative society.—(1) 
The Central Registrar may, after considering the report of the liquidator made to him under sub-section 
(3) of section 90, order the registration of the multi-State co-operative society to be cancelled and on such 
cancellation, that society shall stand dissolved. 

(2) An order passed under sub-section (1) shall be communicated by registered post to the president 
or  the  chairperson  as  the  case  maybe,  of  the  multi-State  co-operative  society  and  to  the  financialin 
stitutions, if any, of which the society was a member. 

CHAPTER XI 

EXECUTION OF DECREES, ORDERS AND DECISIONS 

94.  Execution  of  decisions,  etc.—Every  decision  or  order  made  under  section  39  or  section  40  or 

section83 or section 99 or section 101 shall, if not carried out,— 

(a) on a certificate signed by the Central Registrar or any person authorised by him in writing in 
this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as if it 
were a decree of such court and such decree shall be executed by the Central Registrar or any person 
authorised by him or it in writing in this behalf, by attachment and sale or sale without attachment of 
any property of the person or a  multi-State co-operative society against whom the decision or order 
has been made; or 

35 

 
(b) where the decision or order provides for the recovery of money, by executed according to law 

for the time being in force for the recovery of arrears of land revenue: 

Provided that any application for the recovery of any sum shall be made in such manner— 

(i) to the Collector and shall be accompanied by a certificate signed by the Central Registrar 

or by any person authorised by him in writing in this behalf; 

(ii)  within  twelve  years  from  the  date  fixed  in  the  decision  or  order  and  if  no  such  date  is 

fixed, from the date of decision or order, as the case may be; or 

(c) be executed by the Central Registrar or any person authorised by him in writing in this behalf, 
by attachment and sale or sale without attachment of any property of the person or a multi-State co-
operative society against whom the decision or order has been made. 

95. Execution of orders of liquidators.—Every order made by the liquidator under section 90 shall 

be executed according to the law for the time being in force for the recovery of arrears of land revenue. 

96.  Attachment  before  award.—(1)  Where  the  arbitrator  is  satisfied  that  a  party  to  any  reference 
made  to  him  under  section  84  with intent  to  defeat  or  delay  the  execution  of  any  decision that  may  be 
passed thereon is about to— 

(a) dispose of the whole or any part of the property; or 

(b) remove the whole or any part of the property from its existing precincts, 

the arbitrator may, unless adequate security is furnished, direct conditional attachment of the said property 
or such part thereof a she deems necessary. 

(2) The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the 

same way as an attachment order passed by itself and shall have the same effect as such order. 

97.  Central  Registrar  or  arbitrator  or  person  authorised  to  be  civil  court  for  certain 
purposes.—The  Central  Registrar  or  the  arbitrator  or  any  person  authorised  by  him  in  writing  in  this 
behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the 
attachment and sale or  by  sale  without attachment  of  any  property,  or  when  passing  any  orders on any 
application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court 
for the purposes of article 136 of the Schedule to the Limitation Act, 1963 (36 of 1963). 

98.  Recovery  of  sums  due  to  Government.—(1)  All  sums  due  from  a  multi-State  co-operative 
society, or from an officer or member or past member of a multi-State co-operative society, to the Central 
Government or a State Government, including any cost awarded to the Central Government or the State 
Government,  as  the  case  may  be,  under  any  provision  of  this  Act,  may,  on  a  certificate  issued  by  the 
Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue as first charge 
on the assets of such society or officer or member, as the case may be. 

(2)  Sums  due  from  a  multi-State  co-operative  society  to  the  Central  Government  or  a  State 
Government  and  recoverable  under  sub-section(1)  may  be  recovered  firstly  from  the  property  of  the 
society and secondly from the members, past members or the estates of deceased members, subject to the 
limit of their liability: 

Provided that the liability of past members and the estate of deceased members shall in all cases be 

subject to the provisions of section 37. 

CHAPTER XII 

APPEALS AND REVIEW 

99.  Appeals.—(1)  Subject  to  the  provisions  of  section  100,  an  appeal  shall  lie  under  this  section 

against— 

(a) an order made by the Central Registrar under sub-section (3) of section 7 refusing to register a 

multi-State co-operative society; 

(b) an order made by the Central Registrar under sub-section (9) of section 11 refusing to register 

an amendment of the bye-laws of a multi-State co-operative society; 

36 

 
(c)  a  decision  of  a  multi-State  co-operative  society  refusing  or  deemed  to  be  refusing  under                   

sub-section (4) of section 25 to admit any person as a member of the society who is otherwise duly 
qualified for membership under the bye-laws of the society; 

(d) an order made by the Central Registrar under section 81apportioning the costs of an inquiry 

held under section 78 or an inspection made under section 80; 

(e) an order made by the Central Registrar under sub-section (2) of section 83; 

(f) an order made by the Central Registrar under section 86directing the winding up of a  multi-

State co-operative  society; 

(g) an order made by the liquidator of a multi-State co-operative society under section 90. 

(2)  An  appeal  against  any  decision  or  order  under  sub-section  (1)  shall  be  made  within  sixty  days 

from the date of such decision or order to the prescribed appellate authority. 

(3) The appellate authority may, if satisfied that the appellant was prevented by sufficient cause from 
preferring the appeal within the period of sixty days, admit the appeal within such further period as that 
authority may deem fit. 

(4) In disposing of an appeal under this section, the appellate authority may, after giving the parties a 
reasonable opportunity of making their representation, pass such order thereon as that authority may deem 
fit. 

(5) The decision or order of the appellate authority on appeal shall be final. 

100. No appeal in certain cases.—Notwithstanding anything contained in this Act, where, with the 

previous sanction in writing of, or on requisition by, the Reserve Bank, a co-operative bank— 

(a) is being wound up; or 

(b) in respect of which a scheme of amalgamation or reorganisation is given effect to, 

no  appeal there against  shall  lie  or  be  permissible, and  the  sanction or requisition  of the  Reserve  Bank 
shall not be liable to be called in question. 

101. Review.—(1) The appellate authority referred to  in section 99, may, on the application of any 

party, review its own order in any case and pass in reference thereto such orders as it thinks fit: 

Provided that no such application shall be entertained unless the appellate authority is satisfied that 
there has been a discovery of new and important matter or evidence which after exercise of due diligence 
was not within the knowledge of the applicant or could not be produced by him at the time when the order 
was made or that there has been some mistake or error apparent on the face of the record or for any other 
sufficient reason: 

Provided further that no such order shall be made under this sub-section unless notice has been given 

to all interested parties and they have been afforded a reasonable opportunity of being heard. 

(2)  An  application  for  review  under  sub-section  (1)  by  any  party  shall  be  made  within  thirty  days 

from the date of communication of the order of the appellate authority sought to be reviewed. 

102. Interlocutory orders.—Where an appeal is made under section 99, the appellate authority may 
in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order 
of stay pending the decision of the appeal as such authority may deem fit. 

CHAPTER XIII 

SOCIETIES WHICH BECOME MULTI-STATE CO-OPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION 
OF STATES 

103. Co-operative societies functioning immediately before reorganisation of States.—(1) Where, 
by  virtue  of  the  provisions  of  Part  II  of  the  State  Reorganisation  Act,  1956  (37  of  1956)  or  any  other 
enactment relating to reorganisation of states, any co-operative  society which immediately before the day 
on which the reorganisation takes place, had its objects confined to one state becomes, as from that day, a 
multi-State  co-operative  society,  it  shall  be  deemed  to  be  a  multi-State  co-operative  society  registered 
under the corresponding provisions of this Act and the bye-laws of such society shall, in so far as they are 
not inconsistent with the provisions of this Act, continue to be in force until altered or rescinded. 

37 

 
(2)  If  it  appears  to  the  Central  Registrar  or  any  officer  authorised  in  this  behalf  by  the  Central 
Government (hereafter in this section referred to as the authorised officer) that it is necessary or expedient 
to  reconstitute  or  reorganise  any  society  referred  to  in  sub-section  (1),the  Central  Registrar  or  the 
authorised officer, as the case may be, may, with the previous approval of the Central Government, places 
before a meeting of the general body of that society, held in such manner as may be prescribed, a scheme 
for the reconstitution or reorganisation, including proposals regarding— 

(a) the formation of new multi-State co-operative societies and the transfer thereto in whole or in 

part, of the assets and liabilities of that society; or 

(b) the transfer, in whole or in part, of the assets and liabilities of that society to any other multi-
State co-operative society inexistence immediately before the date of that meeting of the general body 
(hereafter in this section referred to as the existing multi-State co-operative society). 

(3) If the scheme is sanctioned by a resolution passed by a majority of the members present at the said 
meeting,  either  without  modifications  or  with  modifications  to  which  the  Central  Registrar  or  the 
authorised  officer  agrees,  he  shall  certify  the  scheme  and  upon  such  certification,  the  scheme  shall, 
notwithstanding anything to the contrary contained in any law, regulation or bye-laws for the time being 
in force, be binding on all the societies affected by the scheme, as well as the shareholders and creditors 
of all such societies. 

(4)  If  the  scheme  is  not  sanctioned  under  sub-section  (3),  the  Central  Registrar  or  the  authorised 
officer may refer the scheme to such judge of the appropriate High Court, as may be nominated in this 
behalf by the Chief Justice thereof, and the decision of that judge in regard to the scheme shall be final 
and shall be binding on all the societies affected by the scheme as well as the shareholders and creditors 
of all such societies. 

Explanation.—For the purposes of this sub-section, “appropriate High Court” means the High Court 
within the local limits of whose jurisdiction the principal place of business of the multi-State co-operative 
society is situated. 

(5)  Notwithstanding  anything  contained  in  this  section,  where  a  scheme  under  sub-section  (2) 
includes any proposal regarding the transfer of the assets and liabilities of any  multi-State co-operative 
society referred to in clause (b) thereof, the scheme shall not be binding on such multi-State co-operative 
society or the shareholders and creditors thereof, unless the proposal regarding such transfer is accepted 
by that multi-State co-operative society by a resolution passed by a majority of the members present at a 
meeting of its general body. 

CHAPTER XIV 

OFFENCES AND PENALTIES 

104. Offences and penalties.—(1) A multi-State co-operative society or an officer or member there 
of wilfully making a false return or furnishing false information, or any person wilfully or without any 
reasonable  excuse  disobeying  any  summons,  requisition  or  lawful  written  order  issued  under  the 
provisions  of  this  Act,  or  wilfully  not  furnishing  any  information  required  from  him  by  a  person 
authorised in this behalf under the provisions of this Act, shall be punishable with fine which shall not be 
less than two thousand rupees and which may extend to ten thousand rupees. 

(2) Any employer who, without sufficient cause, fails to pay to a multi-State co-operative society the 
amount deducted by him under section 60 within a period of fourteen days from the date on which such 
deduction is made shall, without prejudice to any action that may be taken against him under any other 
law for the time being in force, be punishable with fine which may extend to five thousand rupees. 

(3) Any officer or custodian who wilfully fails to hand over custody of books, accounts, documents, 
records, cash, security and other property belonging to a multi-State co-operative  society of which he is 
an officer or custodian, to a person entitled under section 54, or section 70, or section 78, or section 79, or 
section 89 shall be punishable with fine which may extend to two thousand rupees and in the case of a 
continuing  breach,  with  a  further  fine  which  may  extend  to  five  thousand  rupees  for  every  day  during 
which the breach is continued after conviction for the first such breach. 

(4) Whoever, before, during or after the election of delegates under the proviso to sub-section (1) of 

section 38 or election of members of the board,— 

(a) fraudulently defaces or fraudulently destroys any nomination paper; or 

38 

 
(b)  fraudulently  defaces,  destroys  or  removes  any  list,  notice  or  other  document  affixed  by  or 

under the authority of a returning officer; or 

(c)  fraudulently  defaces  or  fraudulently  destroys  any  ballot  paper  or  the  official  mark  on  any 

ballot paper or any declaration of identity; or 

(d)  without  due  authority  supplies  any  ballot  paper  to  any  person  or  received  any  ballot  paper 

from any person or is in possession of any ballot papers; or 

(e)  fraudulently  puts  into  any  ballot  box  anything  other  than  the  ballot  paper  which  he  is 

authorised by law to put in; or 

(f)  without  due  authority  destroys,  takes,  opens  or  otherwise  interferes,  with  any  ballot  box  or 

ballot papers then in use for the purposes of the election; or 

(g) fraudulently or without due authority, as the case may be, attempts to do any of the foregoing 

acts or wilfully aids or abets the doing of any such acts; 

(h) offers any gift or promises to offer any gratification to any person with the object, directly or 

indirectly, of including— 

(i)  a  person  to  stand  or  not  to  stand  as,  or  to  withdraw  or  not  to  withdraw  from,  being  a 

candidate at an election; or 

(ii)  a  member  to  vote  or  refrain  from  voting  at  an  election,  or  as  a  reward  to  a  person  for 
having so stood or not stood or for having withdrawn or not having withdrawn his candidature; or 

(iii) a member for having voted or refrained from voting, 

shall be punishable with imprisonment for a term which may extend to six months or with fine or with 
both. 

105. Cognizance of offences.—(1) No court inferior to that of a Metropolitan Magistrate or a Judicial 

Magistrate of the first class shall try any offence under this Act. 

(2) No prosecution for offences under section 104 shall be instituted except on a complaint filed in 
writing by a member of a  multi-State co-operative society or by the Central Registrar in the competent 
court. 

CHAPTER XIV 

MISCELLANEOUS 

106.  Copies  of  bye-laws,  etc.,  to  be  open  to  inspection.—Every  multi-State  co-operative  society 
shall keep a copy of the rules and its bye-laws and also a list of its members, open to inspection free of 
charge at all reasonable times, at the registered address of the society. 

107.  Place  of  keeping  and  inspection  of,  registers  and  returns.—(1)  The  register  of  members 
commencing from the date of the registration of multi-State co-operative society, the index of members, 
the  register  of  debenture  holders,  and  copies  of  all  annual  returns  prepared  together  with  the  copies  of 
certificates and documents, shall be kept at the registered office of the multi-State co-operative society. 

(2)  The  registers,  indexes,  returns  and  copies  of  certificates  and  other  documents  referred  to  in       

sub-section (1) shall be open during business hours (subject to such reasonable restrictions, as the multi-
State  co-operative  society  may  impose,  so  that  not  less  than  two  hours  in  each  day  are  allowed  for 
inspection) to the inspection— 

(a) of any member or debenture holder, without fee; and 

(b) of any other person, on payment of such sum as may be prescribed for each inspection. 

108. Inspection of books of account, etc., of multi-State co-operative society.—(1) The books of 
account and other books and papers of every multi-State co-operative society shall be open to inspection 
during business hours— 

(i) by the Central Registrar, or 

(ii) by such officer of the Government as may be authorised by the Central Government in this 

behalf: 

39 

 
Provided that such inspection may be made without giving any previous notice to that society or 

any officer thereof; 

(iii) by the members of the multi-State co-operative society. 

(2)  It  shall  be  the  duty  of  every  director,  other  officer  or  employee  of  the  multi-State  co-operative 
society to produce to the person making inspection under sub-section (1), all such books of account and 
other books and papers of the multi-State co-operative society in his custody or control and to furnish him 
with any statement, information or explanation relating to the affairs of such society as the said person 
may require of him within such time and at such place as he may specify. 

(3) It shall also be the duty of every director, other officer or employee of the multi-State co-operative 
society  to  give  to  the  person  making  inspection  under  this section  all  assistance  in  connection  with the 
inspection which the multi-State co-operative society may be reasonably expected to give. 

(4) The person making the inspection under this section may, during the course of inspection,— 

(i) make or cause to be made copies of books of account and other books and papers, or 

(ii)  place  or  cause  to  be  placed  any  marks  or  identification  thereon  in  token  of  the  inspection 

having been made. 

(5) Notwithstanding anything contained in any other law for the time being in force or any contract to 
the contrary, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making an 
inspection under this section shall have the same powers as are vested in a civil court under the Code of 
Civil Procedure, 1908 (5 of1908) while trying a suit, in respect of the following matters, namely:— 

(i) the discovery and production of books of account and other documents, at such place and such 

time as may be specified by such person; 

(ii) summoning and enforcing the attendance of persons and examining them on oath; 

(iii) inspection of any books, register and other documents of the multi-State co-operative society 

at any place. 

(6)  Where  an  inspection  of  the  books  of  account  and  other  books  and  papers  of  the  multi-State         

co-operative society has been made under this section, the Central Registrar or an officer authorised under 
clause (ii) of sub-section (1), making the inspection shall make are port to the Central Government. 

109  Annual  accounts  and  balance-sheet.—At  every  annual  general  meeting  of  a  multi-State  co-

operative society, the board shall lay before the multi-State co-operative society— 

(a) a balance-sheet as at the end of every co-operative year; and 

(b) a profit and loss account for that year. 

110. Minutes of proceedings of general meetings and of board and other meetings.—(1) Every 
multi-State co-operative society shall cause minutes of all proceedings of every general meeting and of all 
proceedings  of  every  meeting  of  its  board  or  of  every  committee  of  the  board,  to  be  kept  by  making 
within thirty days of the conclusion of every such meeting concerned, entries thereof in books kept for 
that purpose with their pages consecutively numbered. 

(2)  Each  page  of  every  such  book  shall  be  initialed  or  signed  and  the  last  page  of  the  record  of 

proceedings of each meeting in such books shall be dated and signed— 

(a) in the case of minutes of proceedings of a meeting of the board or of a committee thereof, by 

the chairperson of the said meeting or the chairperson of the next succeeding meeting; 

(b)  in  the  case  of  minutes of  proceedings  of  a  general  meeting,  by  the chairperson  of  the same 
meeting  within  the  aforesaid  period  of  thirty  days  or  in  the  event  of  the  death  or  inability  of  that 
chairperson  within  that  period,  by  a  member  of  the  board  duly  authorised  by  the  board  for  the 
purpose. 

(3)  In  no  case  the  minutes  of  proceedings  of  a  meeting  shall  be  attached  to  any  such  books  as 

aforesaid by pasting or otherwise. 

(4) The minutes of each meeting shall contain a fair and correct summary of the proceedings thereat. 

40 

 
(5)  All  appointments  of  officers  made  at  any  of  the  meetings  aforesaid  shall  be  included  in  the 

minutes of the meeting. 

(6)  In  the  case  of  a  meeting  of  the  board  or  of  a  committee  of  the  board,  the  minutes  shall  also 

contain— 

(a) the names of the members of the board present at the meeting; and 

(b) in the case of each resolution passed at the meeting, the names of the members of the board, if 

any, dissenting from, or not concurring in, the resolution. 

(7) Nothing contained in sub-section (1) to (6) shall be deemed to require the inclusion in any such 

minutes of any matter which, in the opinion of the chairperson of the meeting— 

(a) is, or could reasonably be regarded as, defamatory of any person; 

(b) is irrelevant or immaterial to the proceedings; or 

(c) is detrimental to the interests of the multi-State co-operative society. 

Explanation.—The chairperson shall exercise an absolute discretion in regard to the inclusion or non-

inclusion of any matter in the minutes on the grounds specified in this sub-section. 

111. Minutes to be evidence.—Minutes of meetings kept in accordance with the provision of section 

110shall be evidence of the proceedings recorded therein. 

112.  Presumptions  to  be  drawn  where  minutes  duly  and  signed.—Where  minutes  of  the 
proceedings of any general meeting of the multi-State co-operative society or of any meeting of its board 
or a committee of the board have been kept in accordance with the provisions of section110, then, until 
the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings 
thereat to have duly taken place, and in particular, all appointments of directors or liquidators made at the 
meeting shall be deemed to be valid. 

113.  Inspection  of  minutes  book  of  general  meetings.—The  books  containing  the  minutes  of  the 

proceedings of any general meeting of a multi-State co-operative society shall— 

(a) be kept at the registered office of that society, and 

(b) be open, during business hours, to the inspection of any member of that society. 

114. Liquidator to be public servant.—Any person appointed as liquidator under the provisions of 
this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code 
(45 of 1860). 

115. Notice necessary in suits.—No suit shall be instituted against a multi-State co-operative society 
or any of its officers in respect of any act touching the constitution, management or the business of the 
society until the expiration of ninety days next after notice in writing has been delivered to the Central 
Registrar or left at his office, stating the cause of action, the name, description and place of residence of 
the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has 
been so delivered or left. 

116. Power to amend Second Schedule.—(1) If the Central Government is satisfied that any multi-
State  co-operative  society  should  be  designate  as  a  national  co-operative  society  or  any  national  co-
operative society specified in the Second Schedule should be omitted from the said Schedule, it may, by 
notification,  amend  the  said  Schedule  so  at  to  include  therein  such  multi-State  co-operative  society  or 
exclude there from such national co-operative society, and thereupon the said Schedule shall be deemed 
to have been amended accordingly. 

(2) A copy of every notification under sub-section (1) shall be laid before each House of Parliament 

as soon as may be after it is made. 

117. Bar of jurisdiction of courts.—(1) Save as otherwise provided in this Act, no court shall have 

jurisdiction in respect of— 

(a) the registration of a multi-State co-operative society or its bye laws or of an amendment of the 

bye-laws; 

41 

 
(b)  any  matter  concerning  the  winding  up  and  the  dissolution  of  a  multi-State  co-operative 

society. 

(2)  While  a  multi-State  co-operative  society  is  being  wound  up,  no  suit  or  other  legal  proceedings 
relating  to  the  business  of  such  society  shall  be  proceeded  with  or  instituted  against  the  liquidator  or 
against the society or any member thereof, except by leave of the Central Registrar and subject to such 
terms and conditions as he may impose. 

(3)  Save  as  otherwise  provided  in  this  Act,  no  decision  or  order  made  under  this  Act  shall  be 

questioned in any court. 

118.  Indemnity.—No  suit,  prosecution  or  other  legal  proceedings  shall  lie  against  the  Central 
Registrar  or,  any  person  subordinate  to  him  or  acting  on  his  authority  or  against  any  other  person,  in 
respect of anything in good faith done or purporting to have been done under this Act. 

119. Opening of branches.—Notwithstanding anything contained to the contrary in any law relating 
to co-operative societies in force in a state, a  multi-State co-operative  society, not being a  co-operative 
bank, may open branches or places of business in any place in India. 

120. Filing of  returns.—Every  year  within  six  months  of  the closure  of the  accounting  year  every 

multi-State co-operative society shall file the following returns with the Central Registrar, namely:— 

(a) annual report of the activities; 

(b) audited statements of accounts; 

(c) plan for surplus disposal as approved by the general body; 

(d) list of amendments to the bye-laws of the multi-State co-operative society; 

(e) declaration regarding date of holding of general body meeting and conduct of elections where 

due; 

(f) any other information required by the Central Registrar in pursuance of any of the provisions 

of this Act. 

121. Certain Acts not to apply.—(1) The provisions of the Companies Act, 1956 (1 of 1956) and the 
Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) shall not apply to the multi-State co-
operative societies. 

(2) The multi-State Co-operative societies registered or deemed to be registered under the provisions 
of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies 
and Restrictive Trade Practices Act, 1969 (54 of 1969). 

122.  Central  Government’s  power  to  give  directions  to  specified  multi-State  co-operative 
societies in public interest.—If the Central Government is satisfied that in the public interest or for the 
purposes  of  securing  proper  implementation  of  co-operative    production  and  other  developmental 
programmes approved or undertaken by the Central Government or to secure proper management of the 
business of the specified multi-State co-operative  societies generally or for preventing the affairs of such 
society  being  conducted  in  a  manner  detrimental  to  the  interests  of  the  members,  any  depositors  or 
creditors  thereof,  it  is  necessary  to  issue  directions  to  any  class  of  specified  multi-State  co-operative 
societies  generally  or  to  any  specified  multi-State  co-operative  society  or  societies  in  particular,  the 
Central Government may issue directions to it or to them, from time to time, and all such specified multi-
State co-operative society or the societies concerned, as the case may be, shall be bound to comply with 
such directions. 

123. Supersession of board of specified multi-State co-operative society.—(1) If in the opinion of 
the  Central  Government,  the  board  of  any  specified  multi-State  co-operative  society  is  persistently 
making default or is negligent in the performance of the duties imposed on it by this Act or the rules or 
the bye-laws or has committed any act which is prejudicial to the interests of the society or its members, 
or  has  omitted  or  failed  to  comply  with  any  directions  given  to  it  under  section  122  or  that  there  is  a 
stalemate  in  the  constitution  or  functions  of  the  board,  the  Central  Government  may,  after  giving  the 
board an opportunity to state its objections, if any, and considering the objections, if received, by order in 
writing,  remove  the  board  and  appoint  one  or  more  administrators,  who  need  not  be  members  of  the 
society, to manage the affairs of the society for such period not exceeding six months, as may be specified 

42 

 
in  the  order  which  period  may,  at  the  discretion  of  the  Central  Government,  be  extended  from  time  to 
time; so, however, that the aggregate period does not exceed one year: 

Provided that in the case of a co-operative bank, the provisions of this sub-section shall have effect as 

if for the words “one year”, the words “two years” had been substituted. 

(2) The Central Government may fix such remuneration for the administrators, as it may think fit and 

the remuneration shall be paid out of the funds of the specified multi-State co-operative society. 

(3) The administrator shall, subject to the control of the Central Government and to such instructions 
as it may from time to time give, have power to exercise all or any of the functions of the board or of any 
officer of the specified multi-State co-operative society and take all such actions as may be required in the 
interests of the society. 

(4)  Save  as  otherwise  provided  in  sub-section  (5),  the  administrator  shall,  before  the  expiry  of  his 
term  of  office,  arrange  for  the  constitution  of  a  new  board  in  accordance  with  the  bye-laws  of  the 
specified multi-State co-operative society. 

(5) If, at any time during the period the administrator is in office, the Central Government considers it 
necessary  or  expedient  so  to  do,  it  may,  by  order  in  writing  giving  reasons  therefore,  direct  the 
administrator to  arrange  for  the constitution  of  a  new  board  for  such  specified  multi-State  co-operative 
society  in  accordance  with  the  bye-laws  of  such  society  and  immediately  on  the  constitution  of  such 
board, the administrator shall hand over the management of such society to such newly constituted board 
and cease to function. 

(6)  Where  a  specified  multi-State  co-operative  society  is  indebted  to  any  financial  institution,  the 
Central  Government  shall,  before  taking  any  action,  under  sub-section  (1)  in  respect  of  that  society, 
consult the financial institution. 

Explanation.—For the purposes of sections 122 and 123, “specified multi-State co-operative society” 
means any multi-State co-operative society in which not less than fifty-one per cent. of the paid-up share 
capital or, of total shares, is held by the Central Government. 

124.  Power  to  make  rules.—(1)  The  Central  Government  may,  by  notification,  make  rules  to 

carryout the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the form to be used, the particulars to be given and the conditions to be complied with in the 
making of applications under section 6 for the registration of a  multi-State co-operative society and 
the procedure in the matter of such applications; 

(b) the matters in respect of which a multi-State co-operative society may make bye-laws under 

sub-section (2) of section10; 

(c) the manner in which the order of refusal to register any amendment of the bye-laws shall be 

communicated under sub-section (9) of section 11; 

(d) the manner in which a multi-State co-operative society shall have a principal place of business 

and registered address under section 14; 

(e)  the  procedure  and  conditions  for  change  in  the  extent  of  the  liability  of  a  multi-State  co-

operative society under section 16; 

(f)  the  manner  in  which  order  of  refusal  to  register  an  amendment  of  bye-laws  shall  be 

communicated under sub-section (4) of section 22; 

(g) the classification of federal co-operative and other terms and conditions applicable to in under 

sub-section (3) of section 23; 

(h) the restriction on holding the share capital of the society other than a member referred to in 

section 33; 

(i) the constitution and powers of smaller body representing the general body under the proviso to 

sub-section (1) of section38; 

43 

 
(j) the period within which annual general meeting be called and the procedure at such meetings 

and the powers to be exercised by such meeting under section 39; 

(k) the election of members of the board under sub-section (2) of section 45 through secret ballot; 

(l) the nomination of members under the second proviso to sub-section(1) of section 48; 

(m)  the  additional  measures  and  acts  which  may  be  taken  or,  as  the  case  may  be,  done  by  the 

board under section 49; 

(n) the salary and allowances payable to and other terms and conditions of the Chief Executive 

under sub-section (3) of section 51; 

(o) the conditions subject to which the board may constitute an Executive Committee and other 

committees or sub-committees under sub-section (1)of section 53; 

(p)  the  persons  by  whom  and  the  form  in  which  copies  of  entries  in  books  of  multi-State  co-
operative societies may be certified under section 58 and the charges to be levied for the supply of 
such copies; 

(q)  providing  aid  to  multi-State  co-operative  societies  on  certain  terms  and  conditions  under 

clause (g) of section 61; 

(r)  the  conditions  under  which  profits  may  be  distributed  to  the  members  of  a  multi-State  co-
operative  society  and  the  maximum  rate  of  dividend  which  may  be  paid  by  the  multi-State  co-
operative societies under section 63; 

(s) establishment of contributory provident fund under sub-section(1) of section 69; 

(t) the manner of disposing of the surplus under clause (k) of sub-section (2) of section 90; 

(u)  the  manner  in  which  surplus  assets  be  divided  by  the  Central  Registrar  with  the  previous 

sanction of the Central Government under clause (b) of section 91; 

(v) the appellate authority to be specified under sub-section (2) of section 99; 

(w)  the  procedure  under  section  103  for  reconstitution  and  reorganisation  of  societies  which 

became the multi-State co-operative societies consequent on reorganisation of states; 

(x) the inspection of records of the society on payment of fees under clause (b) of sub-section (2) 

of section 107; 

(y) any other matter which is required to be, or may be, prescribed. 

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree that the rule should not be 
made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may 
be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that rule. 

125. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order published in the Official Gazette, make such provisions 
not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty: 

Provided  that  no  order  shall  be  made  under  this  section  after  the  expiry  of  two  years  from  the 

commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as maybe after it is made, before each 

House of Parliament. 

126.  Repeal  and  saving.—(1)  The  Multi-State  Co-operative  Societies  Act,  1984  (51  of  1984)  is 

hereby repealed. 

(2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with 
respect  to  repeals,  any  notifications,  rule,  order,  requirement,  registration,  certificate,  notice,  decision, 
direction, approval, authorisation, consent, application, request or thing made, issued given or done under 
the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of 

44 

 
this Act, continue to be in force and have effect as if made, issued given or done under the corresponding 
provisions of this Act. 

(3) Every multi-State co-operative society existing immediately before the commencement of this Act 
which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act 
relating to co-operative societies in force, in any State or in pursuance of the provisions of the Multi-unit 
Co-operative Societies Act, 1942 (6 of 1942), or the Multi-State Co-operative Societies Act,1984 (51 of 
1984) shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws 
of such society shall, in so far as they are not inconsistent  with the provisions of this Act, or the rules, 
continue to be in force until altered or rescinded. 

(4)  All  appointments,  rules  and  orders  made,  all  notifications  and  notices  issued  and  all  suits  and 
other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are 
not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and 
instituted under this Act, save that an order made cancelling the registration of a multi-State co-operative 
society shall be deemed, unless the society has already been finally liquidated, to be an order made under 
section 86 for its being wound up. 

(5) The provisions of this Act shall apply to— 

(a) any application for registration of a multi-State co-operative society; 

(b)  any  application  for  registration  of  amendment  of  bye-laws  of  a  multi-State  co-operative 
society, pending at the commencement of this Act and to the proceedings consequent thereon and to 
any registration granted in pursuance thereof. 

(6) Save as otherwise provided in this Act, any legal proceeding pending in any court or before the 
Central Registrar or any other authority at the commencement of this Act shall be continued to be in that 
court or before the Central Registrar or that authority as if this Act had not been passed. 

45 

 
 
 
THE FIRST SCHEDULE 

[See section 3(g)] 

CO-OPERATIVE PRINCIPLES 

1.  Voluntary  and  Open  Membership.—Co-operatives  are  voluntary  organisations,  open  to  all 
persons capable of using their services and willing to accept the responsibilities of membership, without 
discrimination on bases of gender, social inequality, racial, political ideologies or religious consideration. 

2.  Democratic  Member  Control.—Co-operatives  are  democratic  organisations  controlled  by  their 
members, who actively participate in setting their policies and decision making. Elected representatives of 
these co-operatives are responsible and accountable to their members. 

3.  Member’s  Economic  Participation.—Members  contribute  equitable  and  control  the  capital  of 
their Co-operative democratically. At least a part of the surplus arising out of the economic results would 
be  the  common  property  of  the  co-operatives.  The  remaining  surplus  could  be  utilised  benefiting  the 
members in proportion to their share in the Co-operative. 

4.  Autonomy  and  Independence.—Co-operatives  are  autonomous,  self-help  organisations 
controlled  by  their  members.  If  co-operatives  enter  into  agreement  with  other  organizations  including 
Government  or  raise  capital  from  external  sources,  they  do  so  on  terms  that  ensure  their  democratic 
control by members and maintenance of Co-operative autonomy. 

5.  Education,  Training  and  Information.—Co-operatives  provide  education  and  training  to  their 
members,  elected  representatives  and  employees  so  that  they  can  contribute  effectively  to  the 
development  of  their  Co-operatives.  They  also  make  the  general  public,  particularly  young  people  and 
leaders aware of the nature and benefits of co-operation. 

6.  Co-operation  among  Co-operatives.—Co-operatives  serve  their  members  most  effectively  and 
strengthen  the  co-operative  movement,  by  working  together  through  available  local,  regional,  national 
and international structures. 

7. Concern for Community.—While focusing on the needs of their members, co-operatives work for 

the sustainable development of communities through policies accepted by their members. 

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THE SECOND SCHEDULE 

[See sections 3(r) and 116] 

LIST OF NATIONAL CO-OPERATIVE SOCIETIES 

1.  National Co-operative Land Development Banks Federation Limited, Mumbai. 

2.  National Federation of State Co-operative Banks Limited, Mumbai. 

3.  National Co-operative Union of India Limited, New Delhi. 

4.  National Agricultural Co-operative Marketing Federation of India Limited, New Delhi. 

5.  National Co-operative Consumer’s Federation of India Limited, New Delhi. 

6.  National Federation of Co-operative Sugar Factories Limited, New Delhi. 

7.  National Federation of Industrial Co-operative Limited, New Delhi. 

8.  National Co-operative Housing Federation Limited, New Delhi. 

9.  Indian Farmer’s Fertiliser Co-operative Limited, New Delhi. 

10.  All India Federation of Co-operative Spinning Mills Limited, Mumbai. 

11.  All India Industrial Co-operative Banks Federation Limited, Bangalore. 

12.  National Co-operative Dairy Federation of India Limited, Anand. 

13.  Petrofils Co-operative Limited, Vadodara. 

14.  National Heavy Engineering Co-operative Limited, Pune. 

15.  All India Handloom Fabrics Marketing Co-operative Society Limited, New Delhi. 

16.  National Federation of Urban Co-operative Banks and Credit Societies Limited, New Delhi. 

17.  Krishak Bharati Co-operative Limited, New Delhi. 

18.  National Federation of Fishermen’s Co-operative Limited, New Delhi. 

19.  National Federation of Labour Co-operative Limited, New Delhi. 

20.  National Co-operative Tobacco Grower’s Federation, Anand. 

21.  Tribal Co-operative Marketing Development Federation of India Limited, New Delhi. 

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